Analysts believe the Nifty must break out of the 24,500–25,200 zone to establish a definitive trend. Until then, volatility and sideways action may persist.

Despite the ongoing global tensions, the Nifty has steadily recovered from 24,500 to nearly 25,000 in just two days. 

Bharat Sharma of Stockace Financial Services noted that while the market has shown signs of strength, it remains in a consolidation phase. 

According to Sharma, Nifty is trading in a defined range between the lower boundary at 24,500 and the upper boundary at 25,100, which shows that a clear trend has yet to emerge. 

For intraday traders, Sharma highlighted that the Nifty closed above all key Exponential Moving Averages (EMAs) in the 15-minute timeframe. However, it is in a narrow band between 24,900 and 24,870, indicating a significant move in either direction over the next 2-3 days. 

He pegs immediate resistance for the Nifty at 24,960, with the following targets at 25,030, 25,080, 25,160, and 25,200 if the index moves higher. Sharma cautions that seeing all these levels in a single session is unlikely.

On the downside, immediate support is seen between 24,880-24,870 (near the 50-day EMA), with next support at 24,800.

A decisive fall below this level will move towards 24,730, 24,650, 24,580, and 24,500, respectively.

Given the Sensex's options expiry on Tuesday, Sharma also noted that the market will likely trade sideways after an initial move and remain between 24,800 and 25,000.

SEBI-registered analyst Dipak Takodara identified some crucial levels for Nifty trade on Tuesday. 

He sees immediate resistance at 25,200–25,250, at the upper boundary of the consolidation zone. Should Nifty close above this, he sees the next resistance in the 25,650–25,750 zone.

On the downside, Takodara pegs support at the lower boundary of the consolidation zone at 24,450-24,500, followed by the next support at 24,300–24,350 (near 50-day Simple Moving Average).

According to Krishna Pathak, the Nifty needs to sustain above 25,000 to test higher levels of 25,100–25,200. He adds that a failure to sustain above 24,950–25,000 may trigger a fall back towards 24,800.

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