The Indian benchmark indices traded sideways around noon on a day of volatile trading. The Nifty sees resistance at 22,530, holding for a second day with consolidation within the 22,300-22,530 range, showing no clear directional trend.
Experts maintain the view that the market is range-bound until a close above 22,530 is observed. Buy-on-dips strategy is advised as the market shows resilience with no major sign of correction.
At 11:19am, the Sensex was up 52.55 points or 0.07 percent to 73,956.46, and the Nifty was up 4.00 points or 0.02 percent to 22,457.30.
Options data suggests that key straddle positions have been formed at the 22,400 strike for the Nifty. "The range-bound view persists until we witness a close above 22,530. Nifty will only gain momentum to move higher towards the 22,850/23,000 levels upon closing above 22,530. Immediate support is expected around 22,330/22,200, while the crucial support for this series remains at 22,000," Avani Bhatt, senior vice-president of derivative research at JM Financial, said.
Buy on dips
Bhatt recommends buying on dips up to 22,470-22,500 levels with a target of 22,585/22,630 and a stop loss at 22,425.
Also read: Options strategy of the day| Granules India sees bullish momentum in April series
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