On Friday, the Nifty index formed a long bearish candle on the weekly chart, indicating potential market pressure in the short term. Despite this downturn, a minor rally or sideways consolidation may occur over the next one or two days following the significant decline experienced during Friday’s trading session.
The Nifty currently finds support at the 24,100 and 24,000 levels. Immediate resistance is anticipated between 24,450-500, with a more substantial resistance zone at 24,700-750, according to Tejas Shah, a Technical Research Analyst at JM Financial & BlinkX. Open interest data shows the highest call side open interest at 24,400 and 24,300 strike prices, while on the put side, the highest open interest is at 24,200, followed by 24,510.
Jatin Gedia from Sharekhan noted that the Nifty has resumed its decline on the daily charts, resting at 24,000 – 24,050, which aligns with psychological support and the daily lower Bollinger band. Despite a negative trend, there is a chance of a pullback towards 24,350, which should be considered a selling opportunity. In the short term, 24,000 is a likely target.
Rupak De of LKP Securities mentioned that Nifty has slipped below recent consolidation levels, with selling pressure pushing it below 24,350. The market sentiment appears weak, and pullbacks might attract more selling. Any increase toward 24,300-24,400 could be an opportunity to reduce long positions. The near-term support is set at 24,000, and a breach of this level could instigate a further decline.
Praveen Dwarakanath from Hedged.in observed that Nifty hit a low at the 24,100 support level before bouncing back at the end of the session. Momentum indicators on the weekly chart indicate continued weakness in the index. Daily charts show a bearish candle with a long lower wick, suggesting substantial buying near the close. Any rebound could be seen as a selling opportunity, targeting 23,700, which is the next support below 24,000 levels. Options writer data for the monthly expiry suggests increased call writing at 24,000 and higher levels, with short covering in ITM puts, suggesting ongoing weakness in the index.
(Disclaimer: The recommendations, suggestions, and opinions expressed by experts are their own and do not reflect the views of The Economic Times.)
