Tech View: Support at 23,000–23,100 zone remains critical for Nifty Bulls (original) (raw)
Nifty remains range-bound with a slight bearish bias below 23,500–23,860 resistance zone, while 23,000–23,100 remains a crucial support that bulls need to defend to prevent a deeper correction. Analysts believe a sustained move above 23,500 could revive buying interest and open the door for further upside, while a decisive breakout above 23,860 would strengthen the bullish case. Nifty closed at 23,366 on Friday, registering a weekly fall of 0.8%.
RUPAK DE SENIOR TECHNICAL ANALYST, LKP SECURITIES
Where has Nifty headed?
Selling persisted throughout the week as the index remained below all the critical short-term moving averages.
The RSI (Relative Strength Index) continues to show a bearish crossover, indicating the possibility of further weakness in near term. On options front, call writers significantly outnumbered put writers, reflecting a cautious to bearish market sentiment.
Overall, sentiment is likely to remain weak unless there is positive market-triggering news on any front. The support for Nifty is at 23,000,followed by 22,770. A breach of these levels could lead to further downside. The trend is likely to improve only if the index moves above 23,500.
Trading Strategy:
Sell Nifty June Futures below: 23,440, targeting 23,200 and 23,000 levels; Stop Loss can be placed at 23,600.
TOP STOCK BETS
DATAPATTERN: Buy Rs 4,212 CMP Rs 4,215 Stoploss Rs 3,994 Target Price Rs 4,600
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The stock looks ready for another big breakout once the current consolidation ends. The entry may be a bit pre-emptive, but it is worth taking a risk at this level.
EMMVEE: Buy Rs 334.5 CMP Rs 334.2 Stoploss Rs 324 Target Price Rs 350
The stock has been in an up-trend as is sustaining above critical moving averages. The price has recently given a breakout and is maintaining its strength.
DHUPESH DHAMEJA DERIVATIVES RESEARCH ANALYST, SAMCO SECURITIES
Where is Nifty headed?
If Nifty remains below 23,650–23,860, sellers are likely to retain control and rallies may continue to witness supply pressure. Immediate support is placed at 23,300, followed by 23,000. A decisive breakdown below these levels could extend the decline toward 22,800–22,600. On the upside, only a sustained move above 23,860 would negate the current bearish bias and trigger fresh buying momentum.
Trading Strategy:
For traders with a mildly bearish outlook, a Bear Call Spread remains favorable. One may sell the 23,100 Call and buy the 23,400 Call for the June 16 expiry. The strategy benefits if Nifty remains below the resistance zone and continues to trade within the current range, while offering a defined risk-reward structure in a market where upside momentum remains limited.
TOP STOCK BETS
Ather Energy CMP: Rs 1,033; Stoploss: Rs 968; Target Price: Rs 1,160
The stock remains firmly above its rising 20-DMA, high-lighting strong trend support. Momentum indicators remain favorable, with RSI at 65.8 and trending above its signal line, indicating strengthening bullish momentum.
Groww
CMP: Rs 196; Stoploss Rs 183; Target Price: Rs 220
The stock is trading above its rising 20-DMA and has formed a higher-wlow structure, reflecting sustained buying interest. RSI has crossed above its signal line and is trending higher near 55, signaling improving momentum.
The consolidation breakout above the 50% retracement level further strengthens the bullish setup.
MEHUL KOTHARI DVP – TECHNICAL RESEARCH, ANAND RATHI SHARE AND STOCK BROKERS
Where is Nifty headed?
There is no major change in the broader structure. The 23,100–23,300 zone remains a critical support area and will continue to dictate the near-term trend. As long as this zone holds, the possibility of a recovery towards higher levels remains intact.
On the upside, 23,500 is the immediate level to watch. A sustained move above this level could trigger fresh buying interest and pave the way for a rally towards 23,800–24,100. However, failure to hold 23,100 could result in renewed selling pressure and drag the index towards lower levels. We expect Nifty to trade at 23,100–23,800 with a cautiously positive bias, provided the key support zone remains protected.
Trading Strategy:
A protective put strategy for traders with a positive view on the market while seeking downside protection.
Trade Setup:
- Buy Nifty Futures once Nifty Spot crosses and sustains above 23,500.
- Simultaneously buy 23,500 Put Options (Monthly Expiry) as a hedge.
This strategy allows traders to participate in a potential upside move while limiting downside risk through the purchased put option. The setup is particularly suitable in the current environment where volatility remains elevated and markets continue to react sharply to news flow.
ET Bureau
TOP STOCK BETS
Yes Bank: Buy at Rs 23;CMP Rs 23.4; Stoploss: Rs 21; Target Price: Rs 27
The stock has witnessed a fresh breakout on the daily chart and is currently witnessing a healthy pullback towards its short-term moving averages. The overall price structure remains constructive, and the recent breakout suggests the possibility of further upside.
Sarda Energy: Buy on Dips Near Rs 540–530; CMP: Rs 550 Stoploss: Rs 505 Target Price: Rs 600
After a healthy correction, the stock has taken support near its 200-DEMA and is showing signs of resuming its primary uptrend. The current pullback offers a favorable risk-reward opportunity for positional traders.