Tech View: Nifty’s drop below 24,350 could trigger a slide to 24K in near term. How to trade tomorrow
The underlying trend of Nifty remains weak. Having placed around the crucial support as per weekly charts, one may expect chances of an upside bounce from here or from the lows. A sustainable close only above 24,650-24,700 levels could confirm the upside bounce. However, a slide below 24,350 is likely to drag Nifty down to 24K mark in the near term, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 24,600 and 24,500 strike prices, while on the put side, the highest OI was at 24,400 strike price followed by 24,200.
What should traders do? Here’s what analysts said:
Rupak De, LKP Securities
The Nifty formed an inverted hammer pattern on the daily chart, suggesting a possibility of recovery in the near term. Immediate support is placed at 24,350, where the 38.20% Fibonacci retracement level lies. Going forward, if Nifty holds above 24,350, it might recover towards 24,700-24,750. A further recovery above 24,750 could lead to a move towards 25,250. However, a significant correction may occur if Nifty falls below 24,350.
Hrishikesh Yedve, Asit C Mehta Investment Interrmediates
On the daily chart, Nifty formed an inverted hammer candle, which occurred after the breakdown of a head and shoulder pattern. This candlestick formation typically indicates strength. Thus, the 24,378 level serves as crucial short-term support. If Nifty holds above this, it might witness a pullback towards the 24,600–24,700 zone, which coincides with the neckline of the head
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