Tech View: Will Nifty hit 24,000 on election result day? Here’s how to trade on D-Day
Nifty ended Monday’s trading session 733 points higher with analysts saying that if the election results are better than expected on Tuesday the headline index can even cross the 24,000 mark.
The bulls are in full control of the markets at the current juncture and are using every minor pullback to create long positions. Support for the Nifty is now seen at 23,200 and 22,950-23,000 levels. On the higher side, immediate resistance is at 23,350 levels and the next resistance is at the 23,500 mark, said Tejas Shah of JM Financial & BlinkX.
Volatility indicator India VIX ended 15% lower as exit polls predicted that PM Narendra Modi will retain power with a landslide victory.
According to the Open Interest (OI) data, on the call side, the highest OI was observed at the 23,500 strike price, followed by the 24,000 strike price. On the put side, the highest OI was at the 23,000 strike price.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
On the daily charts, we can observe that Nifty has broken above the previous swing high of 23,110 to suggest the start of the next leg of up move which can extend till 23,500-23,740 from a short-term perspective. The psychological level of 23,000 shall act as a key support from a short-term perspective. Daily and hourly momentum indicators have a positive crossover which is a buy signal. Thus, both price and momentum indicators suggest the continuation of the rally.
Rupak De, LKP Securities
The sentiment remains highly dependent on the election results
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