The near-term trend of Nifty continues to be positive. Having placed at the crucial overhead resistance around 19,550-19,600 levels, there is a possibility of some more consolidation or minor weakness in the short term before showing any decisive upside breakout of the resistance. Further weakness from here could find support around 19,300-19,250 levels, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data showed that the call side displayed the highest OI at 19,500, followed by the 19,800 strike prices. Conversely, the highest OI on the put side was observed at the 19,400 strike price. This data suggests a potential sideways movement for Nifty, chart readers say.
The market would be shut tomorrow on the occasion of Diwali Balipratipada.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
Nifty opened gap down and has been consolidating broadly in the range of 19,300 – 19,550 since the past seven trading sessions. During the Muhurat trading session, it broke out the range on the upside however it did not witness follow-through buying interest and has come back within the broad range. We believe until the extremes of the range 19,300 – 19,550 are not breached decisively on either side the consolidation is likely to continue. Stocks-specific action likely to continue during this phase. In terms of levels, 19,310 – 19,290 is the crucial support zone while 19,470 – 19,500 is the immediate hurdle zone from short-term perspective.
Rupak De, LKP Securities
Nifty struggled to maintain levels above 19,500, facing selling pressure that caused the index to retreat towards 19,400. Towards the upper limit, it encountered resistance near an important Fibonacci Retracement level of the previous decline from 19,850 to 18,837, indicating a potential for bearish movement in the short term. Support at the lower end is positioned at 19,300, while resistance is observed at 19,550.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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