HomeBusinessNifty Indicators Signal Positivity but May Meet Resistance at 24,694; Trading Tips

Nifty Indicators Signal Positivity but May Meet Resistance at 24,694; Trading Tips

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The Nifty index increased by 128 points on Tuesday, closing at 24,467. Initially, it began the session on a weak note but recovered sharply from the support zone of 24,150-24,200 and maintained its position above this level for the remainder of the trading period. The first half of the session was marked by volatility following a negative start, while the second half saw new buying activity as bullish sentiment dominated the market.

During Tuesday’s session, Nifty formed a bullish candle, establishing a Triple Bottom pattern in the 24,073-24,140 range, and reached its highest close in the last five sessions. Indicators for the index are providing positive signals, suggesting that the short-term trend of Nifty has shifted to bullish. It is predicted to receive support from the aforementioned range while facing potential resistance in the 24,567-24,694 range in the near term, as noted by Deepak Jasani from HDFC Securities.

In terms of open interest (OI) data, the highest OI on the call side was recorded at the 24,500 and 24,600 strike prices, while on the put side, the greatest OI was at the 24,400 strike price, followed by 24,300.

Analyst Recommendations:

Jatin Gedia, Sharekhan: On the daily charts, Nifty has shown buying interest from the support zone at the 78.6% Fibonacci retracement level of 24,170, signaling the start of the next upward movement. This move is expected to progress towards the Fibonacci extension targets of 24,563 to 24,823. The hourly momentum indicator has shown a positive crossover, suggesting a high probability of the countertrend pullback rally continuing over the upcoming trading sessions.

Hrishikesh Yedve, Asit C Mehta Investment Intermediates: After opening flat and experiencing an initial dip, Nifty demonstrated a strong recovery to close positively at 24,467. The volatility index, INDIA VIX, rose by 1.57% to 14.52, indicating heightened market volatility. Technically, Nifty formed a bullish candle following an Inside Bar pattern, suggesting buying interest. If the index holds above 24,493, it may see additional gains in the 24,600–24,700 range, with strong support at 24,070, favoring a ‘buy on dips’ strategy.

Tejas Shah, JM Financial & BlinkX: As long as Nifty maintains its position above 24,000, the current pullback rally is likely to persist. However, the index faced resistance around the 24,450 to 24,500 levels in recent sessions, requiring a decisive close above these levels for continued strength. Nifty’s support is observed at 24,200 and 24,000, with immediate resistance at 24,450-500, and a crucial resistance zone at 24,700-750.

(Disclaimer: The recommendations, suggestions, views, and opinions provided by the experts are personal and do not reflect the views of Economic Times.)

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