Last week`s decisive close below the 200 DEMA on Friday session tilted the near-term bias to mildly bearish - Tradebulls Securities Pvt Ltd
Nifty
Last week’s decisive close below the 200 DEMA on Friday session tilted the near-term bias to mildly bearish. This technical setup indicated a retest of the 25040 - 24900 demand zone, an area where meaningful buying interest had previously emerged and helped stabilize price escalation. It had spent majority of its last week with its daily RSI struggling to reclaim its crucial 50 mark, highlighting subdued momentum and lack of strong buying conviction. Nifty commenced the week by reacting towards the geopolitical escalations as it breached the 25000 psychological support with a gap and revisited 24500 broadening pattern support zone. On its daily scale its RSI has already declined towards 35 zone but ADX has also breached above its 25 level, which is an alarming sign indicating further weakness. Options data too indicates 25000 now acting a key pivot to gauge any reversal in strength while any slippages towards 24500 would trigger fresh unwinding pressure for a decline towards 24000. Significant call writing at 25500 underscores solid resistance, while put build-up near 24000 is fresh advance towards a range shift. Overall, the outlook remains cautious to mildly negative unless 25400 is not convincingly reclaimed. For traders a long–short trading approach remains prudent, as the index is likely to stay range-bound between 24000 and 25500 with 25000 being the key pivotal. Buying near support and selling near resistance within this band could remain the preferred strategy for short-term traders.
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