Nifty shows strength, key support at 23,000: A buy-on-dips strategy for Friday

On Thursday, Nifty showed positive movement, closing at 23,250, despite losses in Tata Motors and IT stocks. The market saw a dip in volatility, as the India VIX fell by 6.70%, signaling reduced market swings.

Technical Outlook: Nifty formed a green candle on the daily chart, indicating bullish momentum. Immediate resistance is seen around 23,340, where the 21-day Simple Moving Average (21-DSMA) is positioned, while strong support lies at 23,000. As long as Nifty stays above this support level, traders can expect a short-term pullback towards 23,340 and potentially 23,500, making it a favorable market for a buy-on-dips strategy, as advised by Hrishikesh Yedve of Asit C. Mehta Investment Intermediates.

Open Interest (OI) Data:

The highest OI on the call side is at the 23,500 and 23,300 strike prices.

On the put side, the highest OI is at 23,000, followed by 23,200.

Traders can focus on buying near support levels, particularly around 23,000, and target resistance zones around 23,340 and 23,500 in the near term.