A small negative candle was formed on the daily chart with a minor upper shadow. Technically this pattern reflects ongoing range-bound action in the market and the Nifty is currently placed near the lower range around 24,900 levels.
After sustaining above the daily 10and 20 period EMA in the last couple of months, the said moving average supports have been broken on the downside recently and they (10 & 20 period EMA) are now acting as a hurdle as per the concept of change in polarity around 25,150-25,200 levels.
The underlying trend of Nifty continues to be choppy with weak bias. A sustainable move only above 25,200 and a sharp weakness below 24,800-24,700 could bring strong momentum in the market on either side, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 25,100 and 25,000 strike prices, while on the put side, the highest OI was at 25,000 strike price followed by 24,900.