One may expect further upside in the coming sessions and the next upside levels to be watched around 22,800 and immediate support is at 22,300-22,250 levels, said Nagaraj Shetti of HDFC Securities.
OI data showed that on the call side, the highest OI was observed at 22,500 strike prices while on the put side, the highest OI was at 22,300 strike price.
What should traders do? Here’s what analysts said:
The derivatives data indicates short positions outstanding in the index futures segment while the RSI readings are positive and the index has continued the ‘Higher Top Higher Bottom’ structure. This could lead to a short covering of such positions, which could lead the indices higher. The immediate support for Nifty is now placed around 22,200 while the retracements indicate possible targets around 22,700. Thus, traders are advised to continue to trade with a positive bias till the index trades above its support.
Osho Krishan, Angel One
The support zone of 22,200 withheld its significance and is likely to provide a cushion in the near term, followed by 22,150 and 22,000 on a broader term. On the flip side, as Nifty is in uncharted territory, it would be challenging to forecast resistance. But with the strong bullish candle formation, 22,600-22,650 is likely to be seen as the next potent resistance for the index in the comparable period.
Rupak De, LKP Securities
The index exhibited volatility throughout the session but ultimately closed on a strong note. The short-term trend appears positive, as the index concluded the day above the 21-EMA on the daily chart. Additionally, the momentum indicator RSI shows a bullish crossover, indicating a positive momentum for the short term. The bulls are likely to maintain control as long as the index stays above 22,350. Looking ahead, there is potential for the Nifty to reach levels between 22,600 and 22,700 on the higher end.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
