A long negative candle was formed on the Nifty daily chart on Thursday after the upside bounce of the last two sessions. The crucial overhead resistance of 24,500 remained intact and the market was not able to sustain above the resistance area. Though technically this candle pattern is not showing any signs of a bigger decline from here, but some consolidation or minor dip is expected towards 23,800 or slightly lows.The short-term trend remains dicey with short-term volatility in the market. Until the Nifty surpasses 24,500 levels, a meaningful upside rally is not expected. At the lows, the Nifty could find support around 23,800 levels, said Nagaraj Shetti of HDFC Securities.In the open interest (OI) data, the highest OI on the call side was observed at 24,200 and 24,250 strike prices, while on the put side, the highest OI was at 24,200 strike price followed by 24,150.What should traders do? Here’s what analysts said:Jatin Gedia, SharekhanThe daily momentum indicator has a positive crossover, which is a buy signal and the Nifty is trading around the key hourly moving averages i.e. around support which makes it a buy setup. We shall hold on to our bullish outlook for the Nifty for targets of 25,350 from short-term perspective. On the downside, 24,000 shall act as a crucial support level.Rupak De, LKP SecuritiesThe Nifty slipped sharply as the index failed to move beyond the 21 EMA, leading to significant profit booking in the market. On the daily chart, a bearish engulfing pattern was formed, indicating weak market sentiment. This sentiment may worsen if the Nifty decisively sustains below 24,200. On the higher end, the 24,500-24,550 range may act as resistance.Hrishikesh Yedve, Asit C Mehta Investment InterrmediatesTechnically, on a daily basis, the index formed a red candle, suggesting weakness. Thus, 24,500 will serve as the index's initial hurdle, followed by 24,700. However, the index continues to respect 150-Day exponential moving average (DEMA) support near 23,990, as well as recent swing support near 23,800. In the immediate term, we expect the index will consolidate in the range of 23,800 to 24,700. A decisive breakout on either side will determine the next direction of the index. Until then, traders should aim to buy near support and sell near resistance.Praveen Dwarakanath, Hedged.inNifty faced rejection from its resistance at the 24,500 level, indicating continued weakness in the index. Closing below its 10 DMA has further strengthened the downside trend. Weekly momentum indicators continue to signal a further decline in the index. Trend lines suggest that if the support at 23,800 is breached, the index could quickly fall towards the 23,000 level. Options writer data for next week's expiry shows increased call writing above the 24,200 level, reinforcing the weakness in the index.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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