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Nifty

Nifty recovered from its sharp sell-off to close above the 24000 psychological mark. The index started the week with a decline towards 23700, but the intraday pullback formed a Bullish Hammer, which now awaits a confirmatory close for activation. However, the presence of multiple unfilled gaps remains a concern as they may act as near-term resistance during pullbacks. On the indicator front, RSI has entered the oversold zone, indicating the possibility of a technical rebound, while ADX near 38 reflects a still-strong prevailing trend. On the weekly chart, Nifty is trading near a key long-term support around 24240, coinciding with the 200-month EMA. The formation of an Inverted Hammer near this support suggests emerging buying interest and potential for a near-term rebound. Meanwhile, crude prices cooling below $90 and easing geopolitical tensions may support sentiment. Options data indicates a 23500–24500 range, with 24000 as the critical pivot, while 24870 remains the key resistance. Short-term traders should avoid aggressive bottom-fishing while the index trades below the 24870-resistance zone. Fresh long positions may be considered only on confirmation, with a stop loss below 23800 on a closing basis, while maintaining strict risk management around these key support level.

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