Nifty trades up 1% ; Broader trend negative until a decisive close above 24,500 say experts

Options data suggests heavy put writing at 24,000 and 24,250 levels, acting as crucial support for the day. "The index is witnessing selling pressure in the range of 24,300 – 24,400 levels over the past two sessions. This range continues to remain a major hurdle. The Nifty 50 index has support at the 50-day moving average (DMA), set at the 23,900 level. As long as this support is maintained, the trend is likely to regain positive momentum in coming sessions," said Avdhut Bagkar, Technical Analyst at Stoxbox.

Bagkar believes that if the index breaches this support, a short-term decline towards 23,100 cannot be neglected. "On the upside, the index must deliver a resilient close over 24,500 to recoup the losing bias. If that happens, a trend towards 25,000 cannot be ruled out. The overall bias remains sluggish for a few more sessions, with the index trading in the range of 24,500 – 23,900 levels," added Bagkar.

Akshay Bhagwat, Vice President - Derivative Research at JM Financial, believes that "Nifty continues to trade in a sideways price range of 24,350-23,900. After the gap up, the index hit its resistance and is showing signs of a price cool-off. The 24,000 level inputs and 24,500 & 24,300 levels in calls have seen possible options writing bets."

Bhagwat further notes that the broader trend is still negative. "Expect choppiness to continue in the market. A short-term negative price setup holds until Nifty trades below 24,400."

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