Tech View: Nifty may revisit 24,500-24,600 support, forms reasonable red candle. How to trade tomorrow
The underlying trend of Nifty remains weak within range movement. Having failed to sustain the recent upside bounce, the market could revisit the lower range of 24,600-24,500 levels in the near term. Immediate resistance is at 25,000 levels, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 24,900 and 24,800 strike prices, while on the put side, the highest OI was at 24,700 strike price followed by 24,500.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
Nifty witnessed selling pressure from the 25,000 mark, which coincides with the high concentration of open interest on the call side implying resistance. On the downside, the 20-week average (24,730) which was defended well last week is being tested again. So there is a standoff between bulls and bears leading to heightened volatility. Overall, we expect a rangebound price action in the range 24,500 – 25,200 from short- term perspective.
Hrishikesh Yedve, Asit C Mehta Investment Interrmediates
On the daily chart, the Nifty formed a bearish candle, which indicates weakness. However, the index managed to hold the neckline support of the Head and Shoulder pattern and close above the 24,700 level. On the upside, the 21-Days Exponential Moving Average (21-DEMA) around 25,120 will be the major hurdle for the index, followed by 25,240. If the index sustains below 24,700, then further weakness could be possible.
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