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 tomorrow. If the election results align with the exit poll or fall below the exit poll numbers, it might attract mild to heavy selling pressure in the overall market, including the Nifty space. However, if the results are better than expected—meaning if the NDA secures significantly more seats than the average exit poll numbers—then the Nifty might embrace another round of buoyant movement.
Mandar Bhojane, Choice Broking
If Nifty breaks 23,300 level and sustains, it can further rise to 23,700 and 24,000 levels in the coming days. On the downside, 22,900 and 22,800 will act as immediate support levels. For the Bank Nifty, if the price sustains above the 51,000 level, it could further rise to 52,000 and 52,700 levels. On the downside, 50,400 and 50,000 will act as immediate support levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)