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Nifty

Due to Large part of short covering, the Nifty showed a strong comeback during yesterday's session, ending above 24,200 and reclaiming support above the 24,000 mark. This move suggested a possible reversal effort from here and discredited the recent 'Inside Bar' reversal pattern. However, a close above 24,460 would be excellent to establish a bottom formation at the 23,800 base. The 24,460–24,500 mark is the immediate resistance zone. A strong breakout with new long positions might provide a clear direction for the November series. With a solid support base emerging around 23,700, options data now points to a trading range between 23,900 and 24,300. For the week, the highest ceiling might be restricted at about 24,500. The India VIX has decreased volatility and selling pressure, suggesting a potential for a strong short-covering rebound in early November. However, a clear close above 24,460 is needed for a bullish turnaround. Traders should monitor the 24,300 resistance and 24,000 support closely. Increase long commitments only after a trend reversal, and stick to a long-short strategy until the index indicates a more stable and possible reversal.

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