On the derivative front, the strikes of 19,800 saw the highest addition of PE open interest and build-up. The trading day closed with an underperforming market breadth as only 24 out of the Nifty 50 stocks closed in the green, said Avdhut Bagkar Technical and Derivatives Analyst, StoxBox.
What should traders do? Here’s what analysts said:
Jatin Gedia, Sharekhan
The structure is still positive and unless it does not breach below 19,700 we can expect the Nifty to target 19,930 from a short-term perspective. Daily momentum indicator has a positive crossover, which is a buy signal and hence intraday dips should be bought into. In terms of levels 19,850 – 19,875 is the immediate hurdle while 19,720 – 19,700 is the crucial support zone from a short-term perspective.
Rupak De, LKP Securities
On the hourly chart, an ascending triangle is forming, suggesting a probable upside breakout. Sentiment is anticipated to stay sideways as long as it holds above 19700. However, a drop below 19700 might exert downward pressure on the Nifty. Resistance at the higher end is established at 19850; a significant move beyond this level could trigger a rally towards 20200 in the short term.
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