On the upside, the recent breakdown point of 24,180 will act as an immediate hurdle, followed by the 100-day exponential moving average (100-DEMA) hurdle, which is around the 24,350 level. If the index holds 23,800 levels, a relief rally could be possible but till the index remains below 24,350 weakness will persist, said Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates.

Open interest (OI) data showed the highest call OI at the 24,000 and 24,200 strike prices, while the highest put OI was at 24,000, followed by 23,800.

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

Kunal Shah, Mirae Asset SharekhanThe index breached the psychological support of 24,000 but managed to hold above the 200-DMA, which is placed at 20,826. The 200-DMA is the last level of hope for the bulls and a breach below this will open gates for the 23,500/23,300 mark. The index has multiple hurdles on the upside with the first resistance visible at 24,200 and a break above this will move the index higher towards the 24,400/24,500 mark.

Rupak De, LKP Securities

The Nifty witnessed a sharp decline as it broke below the neckline of the Inverse Head and Shoulders pattern. On the lower end, it found support at the low of the right shoulder. Sentiment remains weak following a hawkish comment from the Fed, which could continue to weigh on market sentiment in the short term. Support is placed at 23,850, below which further correction appears likely. Resistance is seen at 24,200.

Nandish Shah, HDFC Securities

Nifty made an intraday low at 23,870, which was near to the previous swing low made on 28th November 2024. Violation of 23,870 support could drag Nifty towards the next support of 200 DEMA, placed at 23,692 odd levels. On the higher side, 24,100 is likely to act as an immediate resistance.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)