Nifty on Tuesday ended 215.5 points lower to form a bearish dark cloud cover candle on the daily chart ahead of the two-day Fed meeting, which begins tonight and Thursday’s Interim Budget session.“Having bounced back sharply from the lows recently and forming a new swing high on Tuesday at 21,813 levels, there is a higher probability of Nifty showing upside bounces from the lows. The near-term uptrend remains intact and we expect the present weakness to be a buy-on-dips opportunity. Immediate support is placed at 21,420 levels,” said Nagaraj Shetti of HDFC Securities.OI data showed that on the call side, the highest OI was observed at 21,700 followed by 22,000 strike prices while on the put side, the highest OI was at 21,500 strike price.What should traders do? Here’s what analysts said:Rupak De, Senior Technical Analyst, LKP SecuritiesNifty exhibited volatility throughout the day, with a prevailing bearish trend. The daily chart indicates the formation of a dark cloud cover, implying a bearish outlook in the near term. Support is situated at 21,500 on the lower end. A significant decline below this level could potentially initiate a correction in the market. Conversely, sustained trades above 21,500 might lead to an upward movement in the market.Rajesh Bhosale, Technical Analyst, Angel OneDuring the day, prices encountered resistance around the 61.8% retracement level of the recent decline (between 22,124 and 21,137), placed around 21,750-21,800. This level holds significant technical importance, and any upward movement towards it is likely to face selling pressure before the key Budget announcement. A sustained trade beyond 21,750-21,800 could potentially shift the balance in favour of the bulls, opening the door to levels between 21,950 and 22,100. On the downside, immediate support lies at 21,350, followed by robust support at 21,200. A breach of these levels could pave the way for a considerable downside in the near term.Ajit Mishra, SVP – Technical Research, Religare BrokingThe recent price action shows indecisiveness among the participants despite the favourable global cues and we feel the prevailing tone may continue. Meanwhile, traders should focus on stock selection and maintain positions on both sides.(Subscribe to ETMarkets WhatsApp channel)