For the Nifty, crucial support is at 22,500-600. As long as the index holds 22,500, it can move towards 22,800 and then 23,000, experts say
The Indian benchmark indices were under selling pressure on the April 12 afternoon, with the Nifty slipping to 22,650, as bank, FMCG, and metal stocks traded 0.5 percent down each.
Capital goods and power bucked the trend and were both up 0.5 percent.
The Nifty faces strong resistance at 22,750-22,780. As long as it holds 22,500, the index can cross 22,800, experts said, advising a buy-on-dips strategy.
Options data suggests a tussle between call and put writers, with 22,700 forming key straddle positions.
As per Sudeep Shah, DVP and Head of technical and derivative research at SBI Securities, "Considering a 130-150 point expected gap down, strong support lies around 22,470-22,490, while resistance is seen at 22,750-22,780. Any sustainable move above the level of 22,780 will lead to an extension of the rally towards 22,930-22,970 in the short term."
If the Nifty slips below 22,470, it will lead to further selling pressure and the index can drop to 22,350-22,310, he added.
Avani Bhatt, senior vice president of derivative research, at JM Financial, said on the downside, crucial support is at 22,500-600. As long as 22,500 is held, the Nifty will attempt to cross 22,800 and move towards 23,000. “Only on a breach of 22,500, Nifty will slide down to re-visit 22,200-250 area."
Bhatt said, “Bias remains positive, and knee-jerk reactions are likely to be digested. Buy on dips. "
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