Nifty is currently in an attempt of showing an upside breakout of the down sloping trend line around 19500 levels. A decisive move above 19600 levels is expected to pull Nifty towards the next upside of around 19800-19900 levels in the near term
After showing a false downside breakout of 19250 levels on Thursday, the market seems to have reversed sharply on the upside, says Nagaraj Shetti, Technical Research Analyst at HDFC Securities
Amidst this downturn, the addition of substantial open interest in the 19500CE options signifies that the index is poised to expire below the 19,500 mark on Thursdays expiry.
The lower tops and bottoms continued on the daily chart and the present up move of the last two sessions is expected to form a new lower top of the sequence, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Although the trend remains weak, the failure to fall below 19,245 on a closing basis may lead to a short-term pullback in the market. The RSI has shown a bullish crossover. Support is positioned at 19,245; a decisive breach below this level could attract significant selling pressure. On the higher end, resistance is observed at 19,450.