Share Market Investment: Buyers should get ready, Nifty will increase, know the story of investment and profit…

Share Market Investment: The trading session in the stock market was like a nightmare for the buyers. During this period, Nifty broke many important support levels. In the last few trading sessions, Nifty had made a good base at the level of 24800, but the sellers strengthened their hold so much that Nifty closed below the level of 24500. At the end of the day, Nifty fell 309 points and closed at the level of 24472.

A long bear candle has formed on the daily chart of Nifty, indicating an attempt at a downside breakout at the level of 24,600-24,500. After making a series of higher tops and lower lows on the daily chart in the last few months, Nifty is currently weakening after making a new lower top around the level of 25230.

This is a negative sign and indicates a continued downward correction. Another important weekly cluster support for a downside breakout (23.6% retracement and weekly 20 day EMA) is near Nifty 24500 levels.

The short-term trend of Nifty remains negative. A decisive move below 24,500-25,450 levels is likely to open the next downside target of 24000. Nagaraj Shetty of HDFC Securities said any rise till the immediate resistance of 24700 could be a selling opportunity.

Share Market Investment: Highest open interest in option chain

In Nifty Option Chain (OI) data, the highest OI on the call side is at 24600 and 24500 strike prices, while on the put side the highest OI is at 24,400 strike price followed by 24,300.

How to trade in Nifty now, at what level buyers can come

Jatin Gedia of Sharekhan said that on the daily chart, Nifty has fallen below the 20-weekly average (24718) which is a sign of weakness. At the daily end, there is a negative crossover in our momentum indicator which is a sell signal.

Thus both price and momentum indicators are indicating weakness. On the downside, we expect Nifty to move towards 24000 where there is high concentration of open interest on the put side which indicates support. On the upside, the area of ​​24900 – 25000 will act as an important resistance.

Rupak De of LKP Securities said Nifty slipped from the head and shoulders pattern on the daily timeline, leading to a sharp decline during the day. The trend further weakened after Nifty fell below the important support level of 24700.

As long as the index remains below 24700, the trend will remain weak. Market participants can adopt the “sell on rice” strategy. For the first time since the beginning of June this year, the index has fallen below 100 EMA.