Analysts see immediate resistance at 24,640, and only a decisive breakout above this could fuel further gains.
With markets awaiting a rate decision from India’s central bank tomorrow, traders are bracing for a potentially rangebound expiry session on Thursday.
SEBI-registered analyst Bharat Sharma of Stockace Financial Services noted that for the first time in nearly a month, the at-the-money straddle premiums for the upcoming expiry were around 150, much lower than the 200- 250+ range seen otherwise.
This indicated that we will likely see another subdued expiry session on Thursday, with any significant action in the first half-hour or closing moves. He also expects the trade to be volatile on Friday as investors await the Reserve Bank of India (RBI) rate decision.
From a technical perspective, Sharma notes that Nifty found support at the lower boundary near 24,500. If the market continues its upward momentum, we are likely to see Nifty test 24,660-24,680-24,700 and above,
On the downside, immediate support is seen at 24,600, which if breached can lead to Nifty retesting the support of 24,500-24,530 again.
Sharma pegs immediate resistance at 24,640, and a break above this could see gains to the levels of 24,660-24,680-24,730-24,800 and higher.
Options data reinforced his cautious view. He expects to see a muted expiry session on Thursday with no clear directional bias.
Analyst Praveen Girotra highlights that the Nifty futures chart is currently forming a triangle pattern, adding that the risk associated with shorting the market at this juncture is higher than waiting for a dip to buy.
Analyst Dipak Takodara sees immediate resistance on the upper boundary of the consolidation zone between 25,100 and 25,150. Should the Nifty close above it, the next resistance is 25,200- 25,250, followed by 25,650-25,750.
On the downside, Takodara pegs support at the lower boundary of the consolidation zone of 24,450-24,500. Additional support is seen at 24,350-24,400, followed by 24,000 -24,050, which aligns with the 50-day simple moving average.
Takodara believes that as long as the Nifty trades between 24,450 and 24,500 and 25,100 and 25,250, it will likely remain rangebound. If the index breaks above 25,100- 25,250, it could see a rally till 25,650-25,750, while a breakdown below 24,450-24,500 could lead to a decline towards 24,350-24,400.
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