Post Market Comment by Mandar Bhojane, Technical Analyst, Choice Broking
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Below the Quote on Post Market Comment by Mandar Bhojane, Technical Analyst, Choice Broking
Indian equity indices ended on a positive note with Nifty above 25,250 on September 2, led by IT, FMCG, and Banking names. At close, the Sensex was up 194.07 points or 0.24 percent at 82,559.84, and the Nifty was up 42.80 points or 0.17 percent at 25,278.70.
At the start of September, Nifty has shown a strong bullish trend with 13 consecutive higher closes, forming higher highs and higher lows. However, technical indicators like RSI at 70 and Stochastic RSI at 100 suggest the market is in the overbought zone, indicating a potential for a small correction or profit booking from its all-time highs.
Nifty has formed a support base around the 25,100 and 25,000 levels, which can act as immediate support and a buying opportunity if there is a reversal. If Nifty closes above the 25,300 level, short-term targets could be 25,500 and 25,700.
Open Interest (OI) data shows the highest OI on the call side at the 25,500 and 25,700 strike prices, and on the put side at the 25,000 strike price. This data, coupled with the overbought conditions, hints at a possible correction in the September series. Investors and traders can hold their positions and trail their stop loss (SL) for potential upside movement.
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