Tech view: Nifty's positive sentiment on verge of negation, crucial support at 23,500. How to trade on Monday
Nifty is currently placed at the downside breakout of the support of around 23,500 levels (previous swing lows). A decisive slide below the said support could open the next downside of around 23,260 and lower in the short term. Immediate resistance is at 23,700, said Nagaraj Shetti.
In the open interest (OI) data, the highest OI on the call side was observed at 23,5000 and 23,600 strike prices, while on the put side, the highest OI was at 23,400 strike price followed by 23,300.
What should traders do? Here’s what analysts said:
Jatin Gedia, Mirae Asset Sharekhan
On the daily charts, we can observe that the Nifty is approaching Nov 2024 low (23,263). On the daily momentum indicator, we can observe a positive divergence as a new low in prices has not been accompanied by a new low on the momentum indicator however a price confirmation is missing. Thus, we shall continue to ride the fall with a trailing stop loss (23,597) mechanism.
Rupak De, LKP Securities
The bearish pressure continues to intensify as the index closed below 23,500 for the first time in several days. The index remains below the crucial 50 EMA, reaffirming a bearish trend. Furthermore, the RSI remains in a negative crossover, signaling weak momentum. Sentiment stays subdued in the short term, with the potential for a decline toward 23,300 or 23,000. On the upside, resistance is observed at 23,550–23,600.
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