Tech View: Nifty forms neutral Doji candle on daily chart. Here’s how to trade on Wednesday

To trigger momentum, new highs need to be established soon, which could open the door for further gains. Key levels to watch include 24,975 and the bullish gap around 24,850 as immediate support, with resistance at 25,080–25,100 and next at 25,400. Traders are advised to keep a tab on the above levels and trade accordingly, said Rajesh Bhosale of Angel One.

Open Interest (OI) data showed the highest OI on the call side was observed at 25,300 and 25,500 strike prices, while on the Put side, the highest OI was at 24,800 strike price.

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

Jatin Gedia, SharekhanOn the daily charts, we can observe that the Nifty is witnessing profit booking at higher levels around the all-time high of 25,078. The negative divergence and crossover on the momentum indicator could be the reason for the vulnerability at higher levels. On the downside, crucial support is placed in zone 24,960- 24,855. On the upside, the immediate hurdle is placed at 25,200 – 25,250.

Tejas Shah, Technical Research, JM Financial & BlinkX

Nifty is trading around the crucial level of 23,078 (Previous ATH) for the past couple of days and we believe that it will further outperform only if it is able to decisively close above this resistance or else profit-booking is likely from the current levels. The short-term moving averages are just below the price action and should continue to support the indices on every decline. Support for the Nifty is now seen at 25,000 and 24,850 levels. On the higher side, the immediate resistance for Nifty is at 25,078 level (Previous ATH) and the next resistance is at 25,200 Mark.

Rupak De, LKP Securities

The sentiment has entered an indecisive phase as Nifty closed with a Doji pattern on the daily chart. The significant presence of both call and put option writers at the 25,000 strike price strengthens the technical setup. As a result, the Nifty is likely to remain range-bound or might experience a slight dip in the near term. On the lower end, 24,800 could act as immediate support, while a rise above 25,100 might push the Nifty towards 25,300.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)