Put Writer additions were observed in 19,600 and 19,700 strikes, indicating that the downside support is getting stronger, analysts said.
What should traders do? Here’s what analysts said:Rahul Ghose, Founder & CEO, HedgedToday’s sharp-up move saw call writers run for cover. There was significant short covering in the sold calls and put writing also emerged for this week’s expiry and the monthly expiry. Nifty has a strong base between 19,400 and 19,550 with upside targets open. Bank Nifty on the other hand has to cross above the 46,300 level to start an up move again. The max pain level of Bank Nifty has not yet shifted from the 45700 level and any rallies up to this level are likely to get sold into.
Osho Krishan, Sr. Analyst, Technical & Derivative Research, Angel OneAs far as levels are concerned, 19600 is likely to act as a cushion, while the pivotal zone of 19500, coinciding with 20 DEMA, is expected to act as sacrosanct support. On the higher end, a cluster of resistances can be seen around 19,800 – 20,000 in the comparable period.Jatin Gedia – Technical Research Analyst at Sharekhan by BNP ParibasOn the daily charts, we can observe that the Nifty has bounced from the 20-day moving average of 19,600. The bounce-back has overlapped in nature and hence we believe that there is more room for consolidation. A study of the hourly Bollinger bands suggests contraction of range and further points towards range-bound price action. The daily and hourly momentum indicators provide divergent signals which also suggest the absence of trending moves. Considering all the above parameters, we shall continue to maintain that nifty is likely to remain range bound between 19,500 – 20,000. Crucial support levels to keep handy are 19,630 – 19,600 and on the upside, 19,800 – 19,860 is the immediate hurdle zone.
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