On Monday, the Nifty index started off slowly and faced a lot of selling pressure, ending the day at 23,382. The India VIX, which measures market volatility, increased by 5.55% to 14.45, suggesting that investors are feeling uncertain.
From a technical point of view, the Nifty formed a “red candle,” which usually shows weakness in the market. However, it found some support close to the 21-day simple moving average (SMA) at about 23,290. If the index can rise, it might hit the 50-day SMA resistance at around 23,740, and then potentially reach 23,800. But if it stays below 23,290, more drops could happen.
Hrishikesh Yedve from Asit C. Mehta Investment Intermediates advises traders to keep an eye on these important levels. The highest open interest (OI) for call options is at the 23,600 and 23,500 strike prices, while the most significant put option OI is at 23,300, followed by 23,400.
What Analysts Say:
– Jatin Gedia, Mirae Asset Sharekhan: The Nifty has been down for four straight days and has tested a key support level at 23,300, which could determine whether it rises back to 24,000. The daily momentum indicator shows a buy signal, suggesting this downturn may be a good buying chance.
– Om Ghawalkar, Share.Market: The market was jumpy, hitting a low of 23,316. In the final hour, it bounced up to close at 23,381. The Nifty struggled at the 50-SMA last week but found support at the 21-SMA. The options analysis shows strong resistance at 24,000 and support at 22,500.
– Rupak De, LKP Securities: The Nifty’s recent fall is concerning, and sentiment is weak now that it is below the 21 EMA line. If it goes down below 23,350, it could further drop to 23,000. There’s resistance at 23,550.
– Nagaraj Shetti, HDFC Securities: A long bearish candle formed, signaling bad news. If the Nifty goes below 23,220, it could wipe out recent upward trends and lead to a bigger drop. The overall trend is negative, and immediate resistance is at 23,500.
Disclaimer: The opinions and views in this article belong to the experts and do not reflect the view of Thellv.news
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