A long bull candle was formed on the daily chart, which indicates that the market is on the verge of showing an upside bounce. It was observed that Nifty is in the process of forming a double bottom type pattern around 24,700 levels, which needs to be confirmed with more upside. The index closed below its 50-DEMA, however showed a good recovery.
Tuesday's upmove could be a cheering factor for the bulls to make a comeback. Further sustainable upside from here could confirm near term bottom reversal pattern. A decisive move above 25,000 levels could possibly open the next upside resistance of 25,400-25,500 in the near term. Immediate support is at 24,700, said Nagaraj Shetti of HDFC Securities.
In the open interest (OI) data, the highest OI on the call side was observed at 25,000 and 25,200 strike prices, while on the put side, the highest OI was at 25,000 strike price followed by 24,800.
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