Immediate resistance is to be watched around 26250 and support is at 25800, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 26,000 and 26,200 strike prices, while on the put side, the highest OI was at 25,900 strike price followed by 25,800.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
Nifty opened mild in the red and consolidated with a positive bias during the day to close with gains of 64 points. On the daily charts we can observe that the Nifty dipped towards the 25,850 – 25,875 support zone and resumed its up move. The hourly moving averages absorbed the selling pressure and restricted further slide. The Nifty is likely to continue its up move towards 26,300 which is the weekly upper Bollinger band. The support zone is placed at 25,850 – 25,800.
Rupak De, LKP Securities
The Nifty made another lifetime high as bulls seemed in no mood to back down, despite a weak start. The sentiment is likely to remain positive as long as it remains above 25,900, where aggressive put writing was visible. Technically, the Nifty has sustained above its very short-term moving average. Furthermore, no reversal is visible in the momentum indicator. Therefore, we might witness a range-bound to positive move in the near term. Resistance on the higher end, is seen at 26,200-26,250.
Hrishikesh Yedve, Asit C Mehta Investment Interrmediates
Technically, the index is on the verge of crossing the upper trend line resistance of the channel pattern, which is around the range of 26,000 levels. If the index sustains above 26,000 levels, then it could test the levels of 26,200. On the downside, 25,800 will serve as a short-term support for the index. Thus, buy on dips strategy should be adopted in Nifty for the short term.
Tejas Shah, JM Financial & BlinkX
The Nifty index closed above the psychological resistance of 26,000 in Wednesday’s trading session, which indicates that the present rally in Nifty is likely to continue. We are not expecting any run away rally from the current levels even though Nifty closed above the psychological resistance of 26,000 Mark. However, another 200 to 250 points minor rally cannot be ruled out from the current levels. Support for Nifty is now seen at 25,850 and 25,650-700. On the higher side, immediate resistance is at 26,050 level and the next res. zone is at 26,200-250 levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
