The immediate resistance of 18,250 has been taken out sharply on the upside on Monday and the market is now advancing towards the next overhead resistance of around 19,550-19,600 levels in the short term. Immediate support is placed at 19,320 levels, said Nagaraj Shetti of HDFC Securities.
OI data showed that on the call side, the highest OI was observed at 19,500 followed by 19,600 strike prices, while on the put side, the highest OI was at 19,300 strike price.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan by BNP Paribas
Nifty is currently trading around the upper end of the reverse channel which can act as a make-or-break from a short-term perspective. A decisive close above the falling channel can lead to further extension of the current rally. However, there are multiple resistance parameters in the form of the key daily moving averages in the range (19400 – 19500) which can restrict further upside. In terms of levels, 19,240 – 19,300 shall act as a crucial support zone while 19,500 – 19,550 is the immediate hurdle zone.
Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities
The Long-Short ratio has improved drastically from 12.30% on 27 October to 17.68% on November 3 as the Foreign Portfolio Investors (FPIs) marginally trimmed their short exposure in Index futures. Nifty has given a higher close for three consecutive days now.
Nifty tested the 19,310 level twice on an Intraday basis before moving up steadily. Short covering was observed at 19,300 Strike along with strong put writing, which led to a sharp up move today. The level of 19,300 is expected to act as a strong support for Nifty. The option activity at a 19,400 strike will provide cues about Nifty’s Intraday direction tomorrow.Rupak De, LKP Securities
On the upper side, the rally encountered resistance at the 21-day moving average (21DMA). It is anticipated that the trend will continue to move sideways in the near term. A decisive breakthrough above 19,450 points could potentially pave the way for a Nifty rally. On the lower end, support is situated at 19,300 points.
(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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