The stock market traded in a range once again on Thursday. Nifty traded in a range throughout the day and at the end of the day, Nifty fell 36 points to close at 24399. Nifty declined on Thursday as well but it can be noted that Nifty respected its Wednesday day's low level of 24378 and closed above it. This level is the immediate support level of Nifty.

If Nifty comes down to 24500 and after this level, a short covering situation can also be formed in Nifty, which can take Nifty to 24700-24800 levels.

A small negative candle with minor upper and lower wicks formed at a new swing low of 24341 on the daily chart. Technically, this pattern indicates the formation of a doji-type candle pattern (not a classic pattern). Generally, a proper up move or down move followed by confirmation of doji formation on both sides will be considered a reversal pattern.
In the Nifty open interest (OI) data, the highest OI on the call side is seen at 24450 and 24500 strike prices, while on the put side the highest OI is at a 24,400 strike price followed by a 24350 strike price.

How to trade Nifty now? What should traders do?

Jatin Gedia of Sharekhan said that on the daily chart of Nifty, we can see that Nifty has been declining for the last four trading sessions and as a result, it looks slightly oversold. This may lead to a pullback toward the Nifty 24550 - 24600 zone, where the hour-moving averages are. We expect selling pressure to emerge again and hence any pullback towards the resistance level should be considered as a selling opportunity. Nifty is likely to move downwards towards 24200 24000 levels from the short-term view.

Praveen Dwarkanath of Hedged. in said that Nifty remained rangebound throughout the day, however, it broke the previous day's low, which is a sign of weakness in the index. Momentum indicators are showing a further decline, as the index closed slightly below its support at the 24400 level.

A dead cat bounce can be expected from the support level, however,sell-on-rice this could turn out to be a sell on rice opportunity. Data from option writers for monthly expiry showed increased writing of puts and calls at 24400 levels, but more calls are being written, which indicates a downward sideways scenario for the index for tomorrow.