Nifty on Monday ended 189 points higher to form a long-legged Doji candle pattern on the daily chart as it managed to move above the initial hurdle at 22,300 levels.

If the index manages to sustain above 22,500, the market could even reach new all time highs in the near term. Immediate support is at 22,260 levels, said Nagaraj Shetti of HDFC Securities.

Analysis of Nifty Put options reveal a concentration of Open Interest (OI) at the 22,000 level, suggesting potential support for the ongoing expiry. On the Call side, significant OI concentrations are observed at the 22,500 and 22,600 levels, nearing an all-time high.

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

Tejas Shah, JM Financial & BlinkX

Nifty is trading near the crucial resistance zone of 22,300-350 and we believe that Nifty would further outperform only if it is able to decisively close above this resistance zone or else profit booking is likely from the current levels. Any immediate closing above 22,300-350 levels should bring back fresh buying momentum. Support for Nifty is now seen at 22,200 and 22,000. On the higher side, the immediate resistance zone for Nifty is at 22,350-375 levels and the next crucial resistance is at 22,500 mark.

Rupak De, LKP Securities

Sentiment is expected to remain favorable for bulls as long as it stays above 22,150. On the upside, the index could potentially move towards 22,600-22,700. Conversely, a drop below 22,150 could lead to consolidation in the index.

Om Mehra, Samco Securities

The recent formation of a Piercing Line, a bullish technical setup in the daily chart, has further solidified Nifty momentum. The index closed above the previous critical resistance level of 22,300 overcoming the 50% Fibonacci retracement, indicating a bullish sentiment. The Nifty is now above the 50-day moving average (DMA). The immediate support remains at 22,150 while resistance remains in the 22,500-22,550 zone.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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