In light of the broader market strength, a buy-on-dips strategy remains advantageous as long as Nifty maintains its recent low of 22,725. The 21-Day Simple Moving Average (DSMA) at 23,230 serves as an immediate hurdle, and a decisive move above this level could confirm a near-term bottom reversal, said Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates.
According to the open interest (OI) data, the highest OI on the call side was observed at 23,100 and 23,000 strike prices, while on the put side, the highest OI was at 22,800 strike price followed by 22,900.
What should traders do? Here’s what analysts said:
Satish Chandra Aluri, Lemonn Markets DeskTechnically, Nifty 50 remained below the 23,000-support level but after taking support near 23,800 multiple times, Nifty may try to break above 23,000 in coming sessions if positive cues persist. Bank Nifty posted gains on Wednesday and closed just above the 49,500 level, with 49,000 remaining as immediate support.
Rupak De, LKP Securities
The Nifty has moved within a band, keeping the volatile vibe intact. On the lower end, 22,800 is likely to remain crucial support. Until 22,800 is broken, we do not expect a significant fall in the market. A decisive fall below 22,800 might trigger a meaningful correction. However, until that happens, we believe the market is likely to remain range-bound. On the higher end, 23,000/23,150 might act as resistance for Nifty. A decisive breakout above 23,150 could induce a significant rally in the market.
Om Ghawalkar, Share.Market
Nifty opened with a 98-point gap down and made a day low within the first five minutes. Throughout the day, Nifty exhibited volatility in both directions, hitting a high of 23,049 and a low of 22,814, ultimately trading within a 235-point range. According to technical analysis, Nifty has support in the 22,800–22,700 zone. On the upside, itfaces minor resistance around the 23,000 level, which acts as a psychological barrier. If Nifty breaks above and sustains this level, the next resistance zone may be in the23,300–23,400 range.
(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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