Indian benchmark indices traded positive on Monday 29 April. Per market experts, the Nifty is expected to find strong support at 22,200-22,250 levels for the May series. On a spot basis, 22,200-22,800 might be the range for the first fortnight of the series.
According to Religare broking, "Till the time the Nifty trades above 22,200-22,250 on a spot basis, the index is in a `buy on dips' mode for the first weekly expiry."
At noon, the Sensex was up 640.82 points, or 0.87 percent, at 74,370.98, and the Nifty was up 133.30 points, or 0.59 percent, at 22,553.30. About 1,863 shares advanced, 1,386 declined, and 143 remained unchanged.
Options data suggests strong support build up at 22,400 strike, and heavy call writing at 22,800 strike forming a crucial resistance. According to Tejas Shah, Senior Vice President, Technical Research, JM financial, "The Nifty is trading around a make or break resistance zone of 22,400-500 levels, and there is clearly a tug of war between the bulls and the bears for the past two–three days in this zone. Technically, the market seems to be critically placed at this point. Since the price action is far away from the averages, some consolidation or even a 200-250 point pullback can’t be ruled out, and would be healthy."
Shah believes that supports for the Nifty are now seen at 22,350 and 22,150-200 levels. On the higher side, immediate resistance is at the 22,500 mark, and the next resistance is at 22,750-800 levels.
"The sentiment appears positive as long as it holds above 22,300. At the higher end, the Nifty might move towards 22,800-23,000 in May. On the other hand, a fall below 22,300 might trigger a correction towards 22,o00," said Rupak De, Senior technical analyst at LKP Securities.
Among individual stocks, long build up is seen in Balramchini, Finnifty, Banknifty, and Navinfluor. Short build up is seen in SBI Card, Apollohospital, MFSL, and LTTS.
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