The Nifty remains rangebound but technical indicators and options data indicate a sharp move ahead, with key support at 24,700 under threat.

The Nifty 50 continued its subdued trajectory for the third straight session on Wednesday, ending below 24,800. The index was largely rangebound, indicating indecision ahead of the monthly F&O expiry. 

SEBI-registered analyst Mayank Singh Chandel notes that Nifty had slipped below its 10-day Exponential Moving Average (EMA) of 24,777, which had been acting as short-term support. 

Notable surge in volumes, hitting its highest since November 2024. This indicates institutional activity at current levels. 

The daily chart shows the index has been forming lower highs, indicating weakening bullish momentum. It is also hovering just below a crucial falling trendline that has held for over eight months now. 

Chandel notes that if Nifty convincingly breaks 24,700, it may dip further to 24,600 and 24,500. But if it moves back above 24,850, we may see a swift recovery towards the 25,000–25,200 resistance area.

Options data shows heavy buildup at the clear resistance zones of 25,000 and 25,500. Bullish sentiment prevails, as seen by strong Put at 24,750 and 24,700 levels

Overall, he highlights that the 24,500–25,000 range continues to be the key battleground. A breakout or breakdown from this range could set the tone for early June. 

Chandel sees intraday trading resistance at 24,850, followed by 25,000 and 25,200. Meanwhile, support levels are pegged at 24,700, 24,600, and 24,500. 

He expects volatility ahead of expiry. A breakout above 24,850 may trigger short-covering, while a breakdown below 24,700 may increase selling pressure.

Analyst Bharat Sharma of Stockace Financial Services also highlighted the potential for a volatile expiry session on Thursday. From a technical perspective, Nifty faced strong resistance from all key EMAs, especially around 24,800. The narrowing spread of these EMAs to 30-40 points indicates imminent directional moves. 

On the downside, he sees immediate support at 24,730. If breached, it can lead to a fall to 24,660, 24,580, and 24,500, respectively. 

Sharma warned that a sustained move below 24,800 could trigger a deep correction, with major support at 24,500.

On the upside, he expects resistance at 24,800-24,830. A breakout above these levels could see the Nifty approaching 24,900 and potentially 25,000. 

 Sharma expects a decisive move on expiry day if options prices remain elevated in the morning session.

Analyst Dipak Takodara echoed a cautious view, highlighting that the index trades in a consolidation zone. 

He notes that a breakout above 25,100–25,250 could lead to rally up to 25,650–25,750, and a failure to break this range would mean the rangebound consolidation will continue in the near term.

Traders are advised to stay nimble as the Nifty hovers below a key trendline. 

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