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Stocktwits - Indian markets witnessed a correction on Tuesday, with the Nifty ending below 24,900.
Bharat Sharma of Stockace Financial Services observed that the Nifty did not breach the 20-day Exponential Moving Average (DEMA) at 24,800.
He highlighted the escalation of geopolitical tensions in the Middle East, suggesting that economic threats persist.
Going ahead, Sharma identified 24,800 as crucial positional support and intraday support. It serves as the midpoint of his trading range (box) between 24,500 and 25,100.
He expects trade to remain between this range for a few more days before making a decisive breakout in either direction.
For intra-day trading, Sharma pegs immediate support at 24,800, with next support levels at 24,730-24,650-24,580 and 24,500, respectively, with 24,500 being the lower boundary of the trading range.
He sees immediate resistance at 24,880-24,900, with a potential to move towards 25,000 if breached.
Sharma also highlighted that all the EMAs are in a close cluster, indicating that markets could remain volatile irrespective of their next directional move.
Analyst Dipak Takodara noted immediate resistance at the upper boundary of the consolidation zone at 25,200–25,250.
If the index closes above it, Takodara sees the next resistance between 25,650 and 25,750.
On the downside, he expects support at the 20-day Simple Moving Average (SMA) of 24,800–24,850. The next support level is seen at the lower boundary of the consolidation zone between 24,450 and 24,500, followed by the 50-day SMA at 24,300–24,350.
He suggests that a move above 24,800–24,850 could trigger a rally to 25,200–25,250. Meanwhile, a fall below 24,800–24,850 may lead to a decline to 24,450–24,500 levels.
Ketan Mittal observed that the Nifty index has established a strong support zone between 24,800 and 24,850, which it has managed to defend amid rising global uncertainty. But he cautions that if this level were to break decisively, it could lead to further downside until 24,500.
He advised traders to approach the market with tight stop losses to manage risk.