Indian benchmark indices are trading higher amid volatility. Nifty continues to witness choppy price action within the 24,200-24,400 zone. According to experts, short positions are still being added in futures, with the 24,000 support level gaining strength. The index is reattempting a breakout above 24,400. If this attempt sustains, a short-covering rally could fuel momentum towards the 24,500-24,600 area.
At noon IST, the Sensex was up 840.82 points or 1.07 percent at 79,727.04, and the Nifty was up 256.40 points or 1.06 percent at 24,373.40. Approximately 2,087 shares advanced, 1,242 shares declined, and 87 shares remained unchanged.
Options data suggests that significant put writing is evident across the 24,000 to 24,250 levels, providing crucial support for the day. According to Sudeep Shah, DVP and head of technical and derivative research at SBI Securities, "Positionally, the 20-day EMA zone of 24,350-24,400 will act as a critical hurdle for the index, while the 50-day EMA zone of 24,000-23,950 will serve as support. The index has been facing selling pressure from the higher levels over the past three trading sessions."
"Only a sustained move above the 24,400 level will trigger a sharp short-covering rally up to 24,650 in the short term. Conversely, if the index moves sustainably below 23,950, it may continue to experience selling pressure down to the 23,750-23,700 zone," he added.
Riyank Arora, technical analyst at Mehta Equities, noted that "The benchmark index demonstrated strong consolidation above the 24,300 mark during Friday's trading session."
Arora has a bullish view on the market, emphasizing that, "With the overall market structure appearing positive and notable buying activity at lower levels, Nifty is anticipated to advance towards the 24,500 and 24,600 levels as the rally progresses. Immediate support is established around 24,300, with the next significant support near the 24,100 level."
Bank Nifty
Arora believes that immediate support for Bank Nifty is now positioned around 50,300, with the next key support level near 50,000. Given the positive market structure and strong buying interest observed at lower levels, Bank Nifty is expected to advance towards the 51,000 and 51,200 levels as the rally continues.
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!
