However, having placed this candle pattern within a narrow range of 20,150-19,950 levels, the chances of further consolidation movement is likely in the short term, analysts said.
Any decline from here could drag the Nifty towards the immediate support of around 19950 levels. A decisive up move above 20200 levels is expected to pull Nifty towards another hurdle of 20450 levels, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data reveals that the highest OI for calls is at 20,200, followed by 20,300 strike prices. On the put side, the highest OI is at 20,100, followed by the 20,000 strike price. The Nifty Put Call Ratio stands at 0.90. Meanwhile, Bank Nifty has support around 45,720 levels and faces resistance at 46,300.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical analyst at LKP Securities
Nifty remained range-bound throughout the day as the index failed to deliver any decisive breakout from the recent range. The “buy on dips” strategy is expected to be the preferred approach until the Nifty falls below 19,900 decisively. On the upside, call writers at 20,100 are likely to defend the index against further upward movement. A sustained trade above 20,100 could potentially trigger a significant rally in the short term.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities
On intraday charts, the market is holding a higher bottom formation, indicating that the uptrend wave is likely to continue in the near future. As long as the Nifty is trading above the 20000 mark the positive sentiment is likely to continue till 20180-20225 levels. On the flip side, below 20000, the selling pressure could accelerate and drag the index up to 19920-19900.
(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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