Crude Oil Easing May Push Nifty Beyond 23,800 Range - Tradebulls Securities Pvt Ltd
Nifty
A cooling trend in crude oil prices could provide the necessary relief for the index to extend its trading range beyond the 23800–23500 zone. The current range appears to be maturing for a potential breakout, especially as the index successfully defended the crucial 23500 PE OI cluster in the previous session. From a technical standpoint, the daily RSI is showing a positive divergence below the 50 mark, indicating early signs of improving trend strength. However, ADX continues to hover in the neutral-to-negative zone, suggesting that a strong trend confirmation is still awaited. A sustained move above 23840 would act as a trigger for further upside, opening the path towards the 24000 mark. On the downside, the probability of a decisive breakdown below 23500 appears limited for the remainder of the series. The 23400–23500 zone is expected to act as a strong near-term base in the coming weeks. Given the signs of strong intraday reversals, the broader bias remains cautiously optimistic. A short-covering rally towards the 24000–24160 zone cannot be ruled out. Traders are advised to maintain a stock-specific approach and participate in the index move without taking aggressive long positions. The expectation is for a gradual move towards the 24000–24500 zone. The overall view remains intact unless a clear daily reversal emerges or the index decisively breaks below 23500. Until such confirmation, a cautious buy-on-dips strategy is preferred, with a focus on a gradual upward shift in the trading range.
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