Technical indicators presented mixed signals. The RSI at 43 suggested bearish momentum, while the Stochastic RSI showed a bullish crossover, hinting at a possible short-term recovery. This divergence underlines the importance of vigilance, as the market lacks a definitive directional bias, said Mandar Bhojane of Choice Broking.

According to the open interest (OI) data, the highest OI on the call side was observed at 24,000 and 23,800 strike prices, while on the put side, the highest OI was at 23,500 strike price followed by 23,700.

What should traders do? Here’s what analysts said:

Jatin Gedia, Mirae Asset Sharekhan
On the daily charts, we can observe that the Nifty consolidated within the range of the previous trading session, thus making the extremes of the penultimate candle crucial levels to watch out for in the short term i,e 24,100 – 23,550. We expect the Nifty to consolidate between these extremes for the next few trading sessions. Sector rotation and stock-specific action are likely during this phase. Daily and hourly momentum indicators suggest a pullback as they have a positive crossover. The immediate hurdle on the upside is 23,950 – 24,000 while support is placed at 23,550 – 23,500.

Praveen Dwarakanath, Hedged.in

Nifty bounced from its immediate and critical support at the 23,500 level. The bounce during the day was sold off, however, the index closed positive, indicating signs of a further upside move towards the 23,800 level. The index formed an Insider Candle after a fall of more than 1.7% in the previous session. The momentum indicators on the daily chart are rising from the oversold region, indicating a possible bounce from the current levels. Options writer’s data for the Jan monthly expiry showed increased writing of the puts at the 23,800 level, suggesting bullishness in the index.

Hrishikesh Yedve, Asit C. Mehta Investment Interrmediates

Technically, on the daily chart, Nifty formed an iInsider Bar candle. The index will face resistance near 23,900 levels, where its 200-day Simple Moving Average (200-DSMA) is placed. On the downside, the index held 250-DSMA support near around 23,500 levels. In the short term, Nifty is expected to consolidate between 23,500 and 23,900, with a breakout on either side, further determining the direction of the market.

Nagaraj Shetti, HDFC Securities

A small positive candle was formed on the daily chart on Tuesday with an upper shadow. Technically, this market action signals an attempt at an upside bounce in the market after a sharp weakness. Nifty moved above the crucial 200-day EMA at 23,700 levels on Tuesday. The short-term trend of the index continues to be weak. However, the upside bounce of Tuesday could be a slight positive factor for the bulls to come back again. Immediate resistance is at 23,800 and the upside breakout of this hurdle could open further upside for the short term. Immediate support is at 23,460.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)