The short-term trend of Nifty continues to be positive. Having moved above the crucial hurdles recently, the market is expected to zoom into new all-time highs in the near term. However, exit polls of Thursday evening and recently concluded assembly election results of the weekend are expected to show fresh direction for the markets ahead. Immediate support is placed at 19,900-19,950 levels, said Nagaraj Shetti of HDFC Securities.
OI Data showed that on the call side, the highest OI was observed at 20,400 followed by 20,300 strike prices while on the put side, the highest OI was at 20,000 strike price.
What should traders do? Here’s what analysts said:
Ajit Mishra, SVP – Technical Research, Religare Broking
We have almost reached the record high now after three days of advance and may take a breather now. However, rotational buying across sectors would keep the tone positive. We thus suggest utilizing an intermediate pause or a dip to add quality names.
Rupak De, LKP Securities
Nifty ended close to the day’s high on a choppy expiry day. The sentiment remains strong as long as it stays above 20000 since the Put writers at the 20000 strike will defend this level moving forward. The sentiment might weaken only if there’s a drop below 20000; until then, the buy-on-dips strategy is likely to stay prevalent. On the higher side, 20200-20230 acts as a resistance zone. If breached, the index could potentially move towards 20450-20500.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the viEconomic Times)
