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The short-term trend of Nifty remains choppy with weak bias. The market could encounter strong resistance around 21,500-21,600 levels in the coming sessions. Any weakness from here could find support around 21,100-21,000 levels in the near term, said Nagaraj Shetti of HDFC Securities.
On the derivative front, the strikes of 21,,300 saw the addition of the highest call open interest.
The next week is going to be an eventful one with not just big earnings but also an Interim Budget presentation on February 1.
What should traders do? Here’s what analysts said:
Rupak De, Senior Technical Analyst, LKP Securities
The sentiment may continue to lean towards the bears as the Nifty struggled to surpass the 21,500 mark, where call writers held substantial positions. Looking ahead, the trend is likely to remain sideways, fluctuating within the range of 21,300 and 21,500. Nevertheless, a decisive breakthrough above 21,500 could propel the index towards 21,700/22,000 in the short term.
Jatin Gedia, Sharekhan
On the daily charts, we can observe that the counter-trend rally faced resistance in the zone of 21,520 – 21,550. On the downside, the 21,240 – 21,220 zone acted as a support zone where the 40-day moving average is placed. Thus, Nifty is consolidating within these two parameters. A breach of this range shall lead to a move in that direction. The hourly momentum indicator has a positive crossover, which is a buy signal and hence there can be a minor degree bounce up to 21,520 – 21,550 before it resumes the next leg of the fall.
Prashanth Tapse, Senior VP (Research), Mehta Equities
On the technical front, with the immediate resistance being at the 21,400 mark, we expect the market to go down further towards 21,100 and 21,000 eventually, and if it breaks the 21,000 level we can witness more selling pressure up to 20,900-20,500 levels. Any trend change would happen only once Nifty surpasses the 21,500 mark.(You can now subscribe to our ETMarkets WhatsApp channel)
(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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