Although Nifty's short-term trend seems to have reversed, uncertainty remains at the high end. The market may encounter strong resistance around 21,500-21,600 levels in the next session. According to Nagaraj Shetty of HDFC Securities, immediate support is at the 21,220 level.
The hourly momentum indicator triggered a positive crossover, which is a buy signal.
According to the OI data, on the call side, the highest OI was observed at a strike price of 21,700, followed by a strike price of 21,800, and on the put side, the highest OI was observed at a strike price of 21,300.
What should traders do? Analysts say:
Rupak De, Senior Technical Analyst, LKP Securities
After a weak start, Nifty showed erratic movements throughout the day. On the hourly chart, the index has started to show the first signs of a reversal. However, it closed below the resistance level at 21,500. A decisive move above 21,500 could trigger a significant rally in the index. On the downside, support lies between 21,400 and 21,350. A confirmed break above 21,500 could push the index towards above 21,700.
Jatin Gedia, Sharekan
The daily chart shows that Nifty is maintaining its 40-day average of 21,234. Going forward, Nifty is expected to face resistance at the 21,500-21,520 zone where the key hourly moving averages are located. Traders should look for bearish signs near the resistance zone before initiating shorts, as a deeper retracement is likely between 21,780 and 21,800, where the hourly upper Bollinger Band is located. On the downside, 21,250-21,220 will act as an important support zone from a short-term perspective, while 21,500-21,520 will be an immediate hurdle zone from a short-term perspective.(apply ETMarkets WhatsApp Channel) (Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of Economic Times)
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