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Nifty ended Wednesday with gains of 735.85 points or 3.36% and settled at 22,620.35 led by strong buying activity across sectors but more prominently in banks and autos. The 50-stock index ended above the downside channel support of 22,200.Analyst Ashwin Ramani, Derivatives & Technical Analyst at SAMCO Securities said call writers (bears) are exiting with additional PUT writers at all strikes from 21,500 until 22,200, which led to the sharp recovery in Nifty on Wednesday."Strong put writing was observed at the 22,200 and 22,400 Strikes in the Index. The call & put writers fought fiercely at the 22,500 Strike and the option activity at this strike will provide cues about Nifty’s intraday direction," he added.What should traders do? Here’s what analysts said:Jatin Gedia, Sharekhan by BNP ParibasNifty witnessed a gap up opening and after the initial bout of volatility it stabilized and inched higher to close with gains of 736 points. The Nifty has managed to close above the short-term moving average of 22,514, which is a positive sign. The intraday range of movement has been big and above normal. We expect the range bound action to continue. The range is likely to be 21,300–23,000 from a short-term perspective. India VIX cooled off by 30% and closed around 19.03 on Wednesday and we expect it to cool off further as the uncertainty reduces.Rupak De, LKP SecuritiesThe Bank Nifty index saw a sharp recovery from its 200-day moving average, closing above its rising trendline and 21-day EMA. This suggests a buy-on-dip strategy with a stop-loss at 47,500. The immediate support level is 47,800, while resistance is at 49,500.Neeraj Sharma, Asit C Mehta Investment InterrmediatesTechnically, the index has crossed the hurdle of the 100-Day Exponential Moving Average (100-DEMA) and formed an Insider Bar candlestick pattern on a daily scale. The 100-DEMA is placed near 22,050 levels. As long as the index holds above 22,050, bullish momentum will continue. On the upside, 23,000 and 23,350 will act as resistance in the short term.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Capital markets regulator Sebi on Wednesday proposed to enhance the threshold for the basic service demat account (BSDA) to Rs 10 lakh from the current Rs 2 lakh in a bid to boost the participation of retail investors in the securities market. A basic service demat account, or BSDA, is a more basic version of a regular demat account. The facility was introduced by Sebi in 2012 for reducing the burden of demat charges on investors with small portfolios. At present, an individual can hold debt securities worth up to Rs 2 lakh and other than debt securities worth up to Rs 2 lakh in a single demat account to be eligible for BSDA. In order to further boost participation in the securities market and to facilitate ease of doing investments, the facility of BDSA has been comprehensively reviewed, Sebi said in its consultation paper. The regulator proposed that the value of securities held in the demat account should not exceed Rs 10 lakh for debt and other than debt securities combined at any point of time. Listing out eligibility criteria, Sebi said an individual needs to have only one demat account where he/she is the sole or first holder and the individual needs to have only one BSDA in his/her name across all depositories. Additionally, the regulator has proposed to review the maximum annual maintenance charges (AMC) for BSDA. For portfolio values up to Rs 4, Sebi has proposed that annual maintenance charge for a BDSA should be nil and for portfolio values of between over Rs 4 lakh and up to Rs 10 lakh, the charges should be Rs 100. However, if portfolio value exceeds Rs 10 lakh then BDSA should automatically be converted into a regular demat account. With regards to services for BDSA, the regulator said that electronic statements should be provided free of cost to such account holders, besides, physical statements can be charged at Rs 25 per statement. The Securities and Exchange Board of India (Sebi) has sought comments till June 26 on the proposal.