Tech view: Nifty shows strength; 23,000 support key for buy-on-dips. How to trade tomorrow
Nifty, opened flat, maintained buying interest, and settled the day on a positive note at 23,250. The volatility index, India VIX, dropped by 6.70% to 17.39, indicating a cool-off in market volatility.
Technically, Nifty formed a green candle on the daily chart, indicating strength, with immediate resistance near 23,340, where the 21-day Simple Moving Average (21-DSMA) is placed, and strong support at 23,000. As long as Nifty holds above 23,000, a short-term pullback toward 23,340 and 23,500 remains possible, favoring a buy-on-dips strategy, said Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates.
In the open interest (OI) data, the highest OI on the call side was observed at 23,500 and 23,300 strike prices, while on the put side, the highest OI was at 23,000 strike price followed by 23,200.
What should traders do? Here’s what analysts said:
Satish Chandra Aluri, Lemonn Markets Desk
Benchmark indices edged higher on Thursday in a volatile session as markets extended their gains for the third consecutive day ahead of the Budget session. Markets opened flat after overnight losses in Wall Street led to a cautious start as the US Fed kept the benchmark rates steady, as widely expected but indicated a prolonged pause before another rate cut. This led to weakness in IT stocks, as they are most exposed to the US while a steady rally in PSE stocks and realty along with infra and consumer stocks on budget hopes helped the market to cross the 23,300 level. It’s a classic pre-budget move in sectors as investors
