There was a selling environment in the stock market on Friday. Nifty fell by 184 points and closed at the level of 24005. A small red candle was formed on the daily chart of Nifty, which closed at the support level.

A long bear candle formed on the Nifty daily chart, which is formed on the side of Thursday's long bull candle. Technically, this pattern is a sign of profit booking in the market after Thursday's spectacular surge. Nifty is currently close to the support of 23900 level. Buying is likely from here.

A bull candle formed with upper and lower wick on the Nifty weekly chart, which is a high wave type candle. The uptrend for Nifty remains intact in the short term. If Nifty moves above Thursday's high (24,226), we may see levels of 24400-24,500 in Nifty.

In the open interest (OI) data in Nifty, the highest open interest on the call side is at 24200 and 24,100 strike prices, while on the put side the highest open interest is at 24000 strike price followed by 23,900.

Hrishikesh Yedve of Asit C. Mehta Investment Intermediates said that technically Nifty formed a red candle on the daily chart, which is a sign of profit booking, while on the weekly chart Nifty formed a green candle, which indicates the overall trend is strong. Nifty is above the 200-Day Simple Moving Average (200-DSMA), which is currently near 23,900. Additionally, it is above the breakout zone of the short-term consolidation range 23,500-23,900. As long as Nifty is above 23900, one can adopt a buy on dips strategy in Nifty.

Rupak De of LKP Securities said that Nifty could not move above 50 EMA on the daily time frame, resulting in correction in the market. However, the trend remains positive as Nifty closed above 24,000. RSI has been showing a bullish crossover. On the upside, Nifty can move towards 24200-24,220. A break above Nifty 24,220 can potentially take it to 24,500.

If we look at the lower levels of Nifty, a decisive move below 24,000 can take Nifty towards 23700.