The short-term development of Nifty is sharply down and the general chart sample from smaller to bigger timeframe is wanting weak. The subsequent draw back to be watched is round 23,625 (38.2% Fibonacci retracement taken from 4th June backside to 1st Aug prime). Quick resistance is positioned at 24,250 ranges, mentioned Nagaraj Shetti of HDFC Securities.
Open Curiosity (OI) information confirmed that the best OI on the decision facet was on the 24,300 and 24,400 strike costs, whereas on the put facet, it was concentrated at 24,000 strike value.
What ought to merchants do? Right here’s what analysts mentioned
Hrishikesh Yedve, Asit C. Mehta Funding
Nifty witnessed heavy promoting strain after forming a Spinning Prime Sample and ended with a pink candle. A powerful break beneath 24,000 will probably set off additional promoting strain within the index. On the draw back, 23,300 and 23,000 will present vital help for Nifty within the quick time period.
Rajesh Bhosale, Fairness Technical Analyst, Angel One
Merchants are suggested to keep away from making an attempt to catch the underside within the brief time period and may use any rebounds to scale back lengthy positions. On this state of affairs, 24,250 is seen as quick resistance, whereas overcoming the bearish hole left immediately between 24,350 and 24,700 could be a frightening job. On the draw back, 23,900 adopted by 23,600 (the 38.2% retracement of positive aspects from the election day low) are quick help ranges.
The important thing help could be round 23,400-23,300, aligning with the 89 EMA and the 50% retracement of the talked about up transfer. Merchants ought to monitor these ranges and modify their trades accordingly.
Rupak De, Senior Technical Analyst, LKP Securities
Nifty slipped again into the rising channel on the every day timeframe because of heavy promoting throughout the day. On the decrease finish, Nifty discovered preliminary help on the 50EMA earlier than closing barely increased. The RSI is in a bearish crossover and falling. Sentiment is prone to stay weak within the brief time period and should weaken additional beneath 23,900. Assist is positioned at 23,900/23,700. On the upper finish, resistance is seen at 24,200/24,500.
(Disclaimer: Suggestions, ideas, views and opinions given by the consultants are their very own. These don’t symbolize the views of The Financial Occasions)
