The Nifty formed a small red candle close to the 100-day exponential moving average (DEMA) on Wednesday, indicating strong resistance around the 24,470-24,500 levels. If the index sustains above 24,500, it may extend gains to 24,600-24,700 range, with 24,070 acting as key support. Asit C. As long as it stays above this level, the “buy on dips” approach remains viable, said Hrishikesh Yedve of Mehta Investment Intermediates.
In open interest (OI) data, the highest OI on the call side was seen at 24,500 and 24,400 strike prices, while on the put side, the highest OI was seen at 24,300 strike price followed by 24,200.
What should traders do? Here’s what analysts had to say:
Jatin Gedia, Sher Khan
Nifty opened a gap down on Wednesday and witnessed volatile price action during the day. It closed down by 126 points. On the daily chart we can see that the Nifty has been trading in the range of 24,500 – 24,070 for the last five trading sessions. Rangebound action in the index is likely to continue due to the monthly expiration of October series derivative contracts. Post that we are likely to witness trending moves. Crucial support level is 24,200 – 24,180 while resistance is placed at 24,500 – 24,550.
Rupak De, LKP Securities
On the hourly chart, the Nifty faced resistance around the 50 EMA, leading to a correction towards 24,300. As long as the Nifty remains in the range of 24,250 to 24,500, the sentiment may remain sideways. A decisive breakout from this range is likely to give direction to the Nifty. On the lower end, support is placed at 24,250 and 24,000, while resistance is seen at 24,500 and 24,750.
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