Tech View: 23,500 key support for trend-following traders. Here’s how to trade on Wednesday

Having sustained above the hurdle of 23,515 levels (1.382% Fibonacci extension), one may expect Nifty to move towards the next resistance of 1.786% Fib extension at 23,950 levels in the near term, while immediate support is placed at 23,450, said Nagaraj Shetti of HDFC Securities.

Open Interest (OI) data showed that on the call side, the highest OI was observed at 24,000 and 24,500 strike prices. On the put side, the highest OI was at 23,000 strike price.

Rupak De, LKP Securities

Following a strong start, Nifty remained within a range as the index formed another day of muted movement on the daily chart. For the last few days, Nifty has been moving sideways on an intraday basis, but eventually it has moved up above 23,500. The trend looks positive from here, with support placed at 23,300. A fall below 23,300 might induce selling pressure. On the higher end, the index might move towards 23,800.

Shrikant Chouhan, Kotak Securities

For trend following traders now, 23,500/77,000 would be the key support level. As long as the market is trading above the same, the bullish sentiment is likely to continue. On the higher side, the market could rally up to 23,700-23,750/77,600-77,800. On the other side, below 23,500/77,000 the sentiment could change. Below the same traders may prefer to exit out from the trading long positions.

Rajesh Bhosale, Angel One

With a bullish undertone, traders should focus on trades outside the index, as the real action lies there. Regarding levels, immediate support is around the bullish gap near 23,500, with key support at 23,350. In the uncharted territory, 23,650 to 23,700 appears to be immediate resistance. Traders are advised to monitor these levels and set up their trades accordingly.

Tejas Shah, JM Financial & BlinkX

Nifty is still making a higher high on the daily, weekly and monthly charts, which is a positive sign. Nifty closed above the critical resistance level of 23,350 last week and we believe that it is likely to test the next resistance zone of 23,750-800 in the next few days. Support for the index is now seen at 23,500 and 23,300-350 levels. On the higher side, immediate resistance is at 23,575-600 levels and the next resistance zone is at 23,750-800 levels.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)