Tech View: Nifty may consolidate within 23,000-23,500. Here’s how to trade on Tuesday

The near-term trend of the index remains positive, but with a crucial hurdle around the 23,300 level, there is a high chance of a short-term downward correction. Immediate support is at the 23,100 level, according to Nagaraj Shetti of HDFC Securities.

on Monday ended 31 points lower to form a small red candle with minor upper and lower shadow on the daily chart.

The near-term trend of the index remains positive. However, having placed at the crucial hurdle around 23,300 levels, the chances of downward correction could be high in the short term. Immediate support is at 23,100 levels, said Nagaraj Shetti of HDFC Securities.

Open Interest (OI) data showed that on the Call side, the highest OI was observed at 23,500 and 24,000 strike prices. On the Put side, the highest OI was at 23,000 strike price.

What should traders do? Here’s what analysts said:

Shrikant Chouhan, Kotak Securities
For day traders now, 23,400/77,000 would be the immediate resistance level. As long as the market is trading below the same, the correction formation is likely to continue. Below the same, the market could slip till 23,100-23,025/76,100-76,000. On the flip side, post 23,400/77,000 breakout the index could move up to 23,500-23,520/77,300-77,400. Contra traders can take long bets near 23,025/76,000 with strict 30/100 points stop loss.

Jatin Gedia, Sharekhan
The hourly momentum indicator has triggered a negative crossover suggesting loss of momentum. Hence, there can be some consolidation in the near term and the Nifty is likely to drift towards 23,160 – 23,100 over the next couple of trading sessions failing to sustain can lead to a fall to 22,930. On the upside 23,420 – 23,500 is the immediate hurdle zone.

Kunal Shah, LKP Securities
Nifty encountered resistance at higher levels and was unable to close above the 23,300 mark. The immediate support for the index stands in the 23,000-22,900 zone, with a break below this range likely to trigger aggressive selling pressure. In the near term, the index is expected to consolidate within a broad range of 23,000-23,500.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Source: Stocks-Markets-Economic Times