Nifty on Thursday ended 173 points higher to test the immediate hurdle of short-term moving average i.e. 20-EMA, but it couldn’t surpass it amid weekly expiry.

On the daily charts we can observe that the index is in the process of retracing the fall it has witnessed from 22,526 – 21,710. The key retracement levels are placed at 22,118 – 22,214. So, the rally is likely to continue over the next few trading sessions. Intraday dips towards support zone 21,950 – 21,930 should be used as a buying opportunity, said Jatin Gedia of Sharekhan said.

Analysis of the Open Interest (OI) data reveals the highest OI on the call side at the 22,200 strike price, followed by the 22,500 strike price. On the put side, the highest OI is observed at the 21,800 strike price.

What should traders do? Here’s what analysts said:

Rupak De, LKP Securities

Nifty rallied following a Doji candlestick pattern on the daily chart, indicating a robust bullish reversal. Additionally, the index has successfully reclaimed the crucial 50-day Simple Moving Average (SMA). Looking ahead, the Nifty could potentially extend its gains towards the range of 22,250-25,300. Moreover, a breakthrough above 22,300 may initiate a rally towards 22,500 and beyond. The buy-on-dips strategy is expected to remain viable as long as the Nifty maintains levels above 21,840.

Osho Krishan, Angel One

For now, 21,870-21,800 is likely to be seen as intermediate support, followed by the recent swing low of 21,700 from a short-term point of view. While on the higher end, the 20 DEMA around 22,100, followed by 22,150-22,200 remains a daunting task for the bulls and until a decisive attainment, tentativeness is likely to persist.

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