Stock Markets Highlights: Nifty forms small-bodied indecisive candle. How to trade

Domestic benchmarks are attempting to sustain new highs, driven by the US Fed’s aggressive rate cut. Meanwhile, the Chinese central bank’s rate cut, and additional stimulus measures have positively influenced global investor sentiment, resulting in gains for domestic metal stocks.

A small-bodied candle was formed on the daily chart, hinting at a sense of indecision. On the level-specific front, the 26,000 mark withholds the formidable barrier to the ongoing momentum, and a decisive breakthrough could only trigger the next leg of the rally towards 26200, marking a sustained uptrend. On the lower end, 25900-25800 is likely to cushion any shortcomings, while strong support lies around 25750-25700 in the comparable period, said Osho Krishnan of Angel One.

In the open interest (OI) data, the highest OI on the call side was observed at 26,000 and 26,200 strike prices, while on the put side, the highest OI was at 25,900 strike price followed by 25,800.