Indian benchmark indices are trading moderately higher amid ongoing volatility. Around noon, Nifty is trading up 168 points or 0.70 percent at 24,315 level, while Bank Nifty is trading up 400 points or 0.88 percent at 50,168 levels.
As per experts, Nifty has been oscillating in a 400 points range since past week. Going ahead, Nifty's short-term support is positioned between 23,950 and 24,000, with resistance in the 24,450 to 24,500 range. A sustained breakout over 24,400 level is needed for a resume of uptrend.
The 24,800 strike has significant call open interest, followed by the 24,500 strike. On the put side, the 24,200 and 24,100 strikes holds substantial open interest, followed by the 24,000 strike.
Sudeep Shah, DVP and Head of Technical and Derivative Research at SBI Securities, stated, "Considering the gap-up opening, the zone of 24,300 to 24,350 will act as an immediate hurdle for the index. A sustained move above the 24,350 level could trigger a sharp rally up to 24,500 in the short term."
"On the downside, the 50-day EMA zone of 24,050 to 24,000 will serve as immediate support for the index. Any sustained move below the psychological level of 24,000 could lead to further selling pressure down to the 23,850 level," added Shah.
Tejas Shah, Senior VP of Technical Research at JM Financial, stated, "Nifty has been trading within the 24,000 to 24,400 range for the past few days. We need to watch for a breakout or breakdown on either side for a potential 300 to 400-point directional move."
"Support for Nifty is now seen at the 23,950 to 24,000 and 23,600 levels. On the higher side, immediate resistance is at 24,200, with the next crucial resistance zone at 24,350 to 24,400," he added.
Bank Nifty
Based on price action Bank Nifty is showing recovery signs on short term time frame at 49,650. "A possible double bottom formation is under formation, which targets 51,000. Risk reward payoff is very beneficial for going longs with strict stops below 49,500, " said Akshay Bhagwat, VP Derivative research at JM Financial.
"Aug 1 weekly has high OI presence at 50,000 PE and did not note any shedding with Bank Nifty momentarily going below 50,000. It suggests the derivatives data too supports the technical levels of 49,600 support of Bank Nifty attempting a short term recovery from current levels, " Bhagwat explained.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
