Nifty holds 20 DEMA support, keeps bullish trend intact - Tradebulls Securities Pvt Ltd
Nifty
Nifty began the week on a muted note but displayed resilience by holding its 20 DEMA support near 23540 keeping the immediate term bullish structure intact. On the upside, the index encountered resistance around the 50 DEMA, with a broader supply zone extending up to 24420. This zone also aligns with a key gap resistance, making it a strong hurdle for further upside. A decisive close above the 24200 CE OI cluster would be a crucial trigger; such a breakout could lead to short covering and push the index towards the 24400 mark. However, the sustainability of any rally will largely depend on macro factors particularly crude oil prices. A sustained move lower in crude, ideally below $88 per barrel, would be supportive. At present, elevated crude prices (above $90), a firm USD/INR, continued FII outflows, and geopolitical uncertainties are limiting upside momentum. On the downside, 23540 remains immediate support. A breach of this level could invite near-term weakness, although the broader trend would remain constructive as long as the index holds above 22630 during the current series.
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