On Thursday, the Nifty index showed some buying interest after bouncing back the day before, but it struggled to maintain higher levels. This means that there are still sellers in the market, and buyers are not fully confident. If the Nifty drops below an important support level at 23,000, it could lead to even more selling, possibly pushing the index down to between 22,800 and 22,500. On the other hand, there is immediate resistance at 23,300 and a more significant barrier at 23,500. For the Nifty to change its negative trend to a positive one, it needs to close above these resistance points.
Given the current ups and downs in the market, trader Hardik Matalia from Choice Broking suggests being careful and using strict stop-loss orders to protect investments. He also recommends avoiding any overnight purchases until the Nifty clearly trades above 23,500.
Examining options data, the highest open interest for call options is at the 23,200 and 23,300 levels, while for put options, it is at 23,200 and 23,100.
What should traders do? Here’s what some experts think:
Jatin Gedia, Mirae Asset Sharekhan: The Nifty has been trading between 23,420 and 23,000 for three days. The Bollinger bands are getting tighter, suggesting the Nifty might trade sideways for now. An important breakout is needed to set a clear trend. Most indicators are showing positive signals, but the price strength isn’t there yet.
Rupak De, LKP Securities: After a strong start, the trading day on Thursday remained quiet with limited moves. The index couldn’t break above the 50 EMA line on the hourly chart, which means selling pressure is still a concern. The bearish trend could continue as long as the Nifty stays below 23,400. Important support levels are at 23,150 and 23,000.
Nagaraj Shetti, HDFC Securities: The Nifty has been creating lower tops and bottoms, which may mean another lower peak is forming soon. The high and low range remains between 23,400 and 23,000. The Nifty, having bounced back, might gradually rise towards 23,400. If it breaks decisively above 23,400, more buying interest could follow.
Satish Chandra Aluri, Lemonn Markets Desk: The main market indexes closed higher after a bumpy ride, with gains mainly from the IT sector and HDFC Bank after their earnings report. Technically, the Nifty 50 managed to hold the 23,200 level after finding support at the key 23,000 mark. Expect resistance levels at 23,400 to 23,500 in the near term.
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