Benchmark indices Sensex and Nifty fell sharply on May 30 amid volatility, ahead of Nifty’s monthly derivatives expiry. After breaching the 22,700 support level yesterday, the Nifty index slipped towards 22,550 today.
According to experts, the bearish gap between 22,825 and 22,860 is seen as an intermediate hurdle on the upside, while strong resistance remains at the 23,000 mark.
Bars in red indicate the change in open interest (OI) of call writers, while the green bars show the change in OI of put writers
The Nifty index is displaying a continuous downtrend, consistently making lower highs and lower lows. For intraday trading, the anchor VWAP (volume-weighted average price) indicates resistance near 22,600, with support around 22,500, said Riyank Arora, a technical analyst at Mehta Equities. “If this level is breached, the next support is at 22,400,” he added.
The buy zone for the Nifty spot is between 22,600 and 22,630, with the extreme lows around 22,480, which is considered a good level to cover shorts and build longs for the next week.
"Technically, occasional pullbacks are beneficial for the ongoing uptrend. The broader setup remains bullish, and after some consolidation or correction, we should see more upside. The short-term moving averages are just below the price action and should continue to support the indices during any decline,” said Tejas Shah, VP of Technical Research at JM Financial.
The support for the Nifty is now seen at 22,500, with immediate resistance at 22,825-22,850, and the next psychological resistance at 23,000, added Shah.
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