Positive chart pattern like higher tops and bottoms is intact on the daily chart. Having reacted down from the key resistance on Thursday, there is a possibility of some more consolidation or minor weakness for the market in the coming sessions.
The near-term trend of Nifty continues to be positive. Having placed at the crucial overhead resistance around 19,550-19,600 levels, there is a possibility of some more consolidation or minor weakness in the short term before showing any decisive upside breakout of the resistance. Further weakness from here could find support around 19,300-19,250 levels, said Nagaraj Shetti of HDFC Securities.
On the derivative front, the strike of 19,300 saw the highest addition of put open interest (OI). In contrast, the strike of 19,500 continued to possess the highest call OI, indicating immediate support and resistance.
The smaller degree of higher tops and bottoms is intact on the daily chart and the recent unfilled opening upside gap around 19,250 levels could offer support for the market during the present consolidation to form a higher bottom, said Nagaraj Shetti of HDFC Securities.
Derivative data showed that on the call side, the highest OI was observed at 19,500, followed by 19,600 strike prices, while on the put side, the highest OI was at 19,400 strike price.