Tech View: Nifty forms a long bull candle ahead of monthly expiry. What traders should do on Thursday
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The short-term trend of Nifty continues to be positive. Having witnessed a decisive upside breakout of 19,900 levels, there is a possibility of continuation of sharp upside momentum for Nifty in the coming sessions. One may expect the formation of new all-time highs above 20,250-20,350 levels in the next few sessions. Immediate support is placed at 19,950 levels, said Nagaraj Shetti of HDFC Securities.
Open Interest (OI) data showed the call side had the highest OI at the 45,000 level, followed by 45,500 strike prices. On the put side, the highest OI was observed at the 44,000 strike price.
What should traders do? Here’s what analysts said:
Prashanth Tapse, Mehta Equities
Investors placed strong bullish bets one day before the monthly F&O expiry, as funds have started flowing back into the secondary market after the recent IPO rush. There are hopes that interest rates may not firm up further in the US, and along with India’s strong economic data points, things could look better for markets in the medium term. However, exit poll results of five states on Friday could trigger a knee-jerk reaction, and intra-day volatility is not ruled out.
Rupak De, LKP Securities
Nifty moved up smartly as the bulls remained at the helm following a consolidation breakout on the daily chart. Besides, the index is sitting comfortably above the crucial short-term moving average. The overall trend looks positive with broader market participation and a smart recovery in the Bank Nifty. Over the short term, the Nifty might move towards 20,450-20,500 unless it falls below 19,850.
(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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