On Thursday, a long negative candle appeared on the Nifty daily chart, suggesting trouble ahead. This comes right after a “hammer” candle appeared on Wednesday, which usually signals good things. But now, that good feeling might be gone. Nifty’s current level is below a key support at around 23,500. If it drops below this level, we could see it fall to about 23,260 or even lower soon. The first resistance level is at 23,700, as noted by Nagaraj Shetti.
Looking at open interest (OI) data, the highest OI for call options is at strike prices of 23,500 and 23,600. For put options, the highest OI is at 23,400, followed by 23,300.
What Should Traders Do? Here’s What Experts Say:
– Jatin Gedia, Mirae Asset Sharekhan: The Nifty is getting close to its lows from November 2024 at 23,263. Although there’s a positive sign in the momentum indicator, we haven’t yet confirmed a price rise. So, keep following the drop but set a trailing stop-loss at 23,597.
– Rupak De, LKP Securities: There’s more bearish pressure as the index dropped below 23,500 for the first time in days. It remains below the important 50-day Exponential Moving Average (EMA), showing a downward trend. The RSI is also down, meaning weak momentum. The sentiment is low, with potential declines to 23,300 or even 23,000. Resistance is noted between 23,550 and 23,600.
– Hrishikesh Yedve, Asit C. Mehta Investment Intermediates: The Nifty is showing weakness, forming a negative candle and closing below the support level of 23,460-23,500. If it stays below this level, it could go down to 23,300-23,260. The 200-day Simple Moving Average (200-DSMA) shows immediate resistance at 23,940.
– Satish Chandra Aluri, Lemonn Markets Desk: The main indexes continued to fall on Friday, ending the week with losses, despite TCS’s strong performance lifting IT stocks. The Nifty 50 looks weak and may test recent lows around 23,200-23,300 if the selling continues.
(Disclaimer: Opinions from experts are their own and do not reflect the views of Thellv.news)
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