The Nifty continues to show fatigue at higher levels. Analysts caution traders to adopt a level-based strategy amid expiry volatility on Thursday.

The Nifty remained subdued for another session on Wednesday, ending below the 24,900 level.

SEBI-registered analyst Mayank Singh Chandel observed that the index ended the day forming a small-bodied candle with a long upper shadow, which is a sign of selling pressure at higher levels. 

From a technical standpoint, he noted that the index now shows signs of a lower top formation around 24,982. This pattern, especially after multiple failed attempts near the 25,000–25,200 resistance zone, suggests short-term weakness or a potential consolidation phase. 

Chandel adds that the 24,700–24,750 zone is a crucial intraday support area. A decisive close below 24,700 could expose the index to a deeper correction toward the 24,500–24,450 range. 

On the upside, fresh momentum will only emerge if Nifty manages a strong move and closes above 25,000, which could open the door to a rally towards 25,200 and possibly 25,500. 

The stochastic Relative Strength Index (RSI) is on the edge of a breakout but has yet to confirm upside traction, while the MACD histogram continues to weaken, suggesting a lack of bullish momentum. 

On the derivatives front, he highlighted that Call writers dominate at 25,000 and 24,800, establishing immediate resistance. Put writers hold ground at 24,750 and 24,500, making these levels key support zones. 

 Adding that the maximum Open Interest on the Put side is still at 24,000: a broader safety net for bulls. Chandel flags key resistance levels at 24,900,25,000, and 25,200, with support at 24,750, 24,700, and 24,500. 

He cautions that until a decisive breakout or breakdown occurs, expect continued range-bound price action between 24,500 and 25,200. Chandel advises intraday traders to maintain a level-based approach, while positional traders can wait for confirmation above 25,000 or below 24,700 for directional plays. 

Bharat Sharma of Stockace Financial Services noted that the index settled with its daily candle forming a green hammer, indicating mixed signals for Thursday’s trading session. 

Sharma maintains his stance that the market will continue to trade in a defined range of 25,100-24,500 for a few more days before any decisive breakout in either direction. Given the consolidation over the last month, he sees a probability of a positive breakout, provided there are no negative developments. 

For the intraday session, he warns traders to be cautious given the weekly expiry on Thursday. On the 15-minute chart, he noted a Descending Flag Formation over the last four days, which, if activated by breaching 24,900, could lead to a 100-200 point upside. 

On the flip side, a lack of momentum from the 24,800-24,760 level will likely lead to an intensive fall. Sharma pegs the next immediate support at 24,700-24,650-24,580-24,500. 

He sees immediate resistance between 24,850-24,880, with a sustained move above 24,900 possibly setting the stage for the Nifty index to retest 25,000 and above. 

On the options data, he cautions that slightly elevated At-the-money (ATM) straddle premiums indicate the possibility of significant moves, if premiums do not erode in the first hour of trading.

Meanwhile, Front Wave Research maintains its neutral stance on the indices. They continue to track 24,985 on the Nifty as the key level for an upgrade and believe that a break above this with confirmation will mark the next phase for fresh longs.

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