This pattern reflects a tug-of-war between buyers and sellers, though the bullish close suggests that buyers had a slight edge by the end of the session. The Nifty index traded sideways in a narrow range at the start of the session, but buyers pulled it higher to close at 24,275.35.
The 24,000 level is expected to serve as a crucial support zone. A decisive break below this level could push the index toward the 23,800–23,600 range.
On the upside, 24,500 remains a significant resistance level, and a sustained breakout above this mark could pave the way for further gains. In the current volatile environment, traders are advised to follow a buy-on-dips strategy as long as the index holds above 24,000, said Hardik Matalia, Derivative Analyst at Choice Broking.
In the open interest (OI) data, the highest OI on the call side was observed at 24,300 and 24,400 strike prices, while on the put side, the highest OI was at 24,200 strike price followed by 24,100.
What should traders do? Here’s what analysts said:
Jatin Gedia, SharekhanOn the daily charts, we can observe that the Nifty is broadly consolidating within a range of 24,100 – 24,350 since the last three trading sessions. We expect this consolidation to continue as the hourly momentum indicator still has a negative crossover and is still away from the equilibrium line. On the downside, 24,160 – 24,140 is a strong support zone. On the upside, 24,350 – 24,400 is the immediate hurdle.
Rupak De, LKP Securities
The Nifty has been consolidating over the past three days following a sharp up move earlier. On the higher side, it faces resistance at 24,420; a decisive breakout above this level could trigger a significant move toward higher levels. On the lower side, support is positioned at 24,100. The index is likely to remain range-bound until it makes a directional move on either side.
Nagraj Sheeti, HDFC Securities
The near-term bottom reversal has been confirmed and the underlying trend of Nifty is strongly up. Having placed near the overhead resistance of 24,500 levels, there is a possibility of consolidation/minor dip in the next 1-2 sessions before showing another round of upside. The next upside target to be watched (above 24,500) is around 25,000 in the next 1-2 weeks. Immediate support is at 23,900.
Tejas Shah, BlinkX & JM Financial
Presently, Nifty is facing a lot of resilience around 24,350 levels for the past few days on an immediate basis. We need to see a decisive close above 24,350 levels for further strength in Nifty or else consolidation is likely to continue in the range of 24,000 to 24,350 levels. Support for Nifty is now seen at 24,150-200 and 23,950-24,000. On the higher side, immediate resistance for Nifty is at 24,350 level and the next crucial resistance zone is at 24,500-550 levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
