Despite pockets of intraday weakness, the prevailing price structure and momentum indicators do not suggest any meaningful trend reversal - Tradebulls Securities Pvt Ltd
Nifty
A 'Doji' formation followed by a Bullish Hammer candlestick pattern reaffirms the strong channel support zone between 24,700 and 24,500, signaling continued consolidation within a well-defined 24500–25000 range. Despite pockets of intraday weakness, the prevailing price structure and momentum indicators do not suggest any meaningful trend reversal. Options open interest (OI) data supports this rangebound bias, with significant buildup seen at both the 24500 (support) and 25000 (resistance) strike prices at the onset of the June series. Notably, a sustained close above 24830 could shift sentiment decisively toward the bullish side, potentially opening up a move toward 25180, and further toward the upper boundary of the channel at 25555. A breakout above 25555 would confirm a bullish flag continuation pattern on the weekly chart, unlocking a medium-term upside target of 26555. Meanwhile, the Open Interest Put-Call Ratio (OIPCR) indicates extremely oversold conditions, suggesting a healthy bounce is likely in the early part of the week. A move above 24830 would be the key trigger to reset the bullish tone and could prompt a retest of 25000. Going forward, 25180 will serve as the critical resistance and momentum trigger, while 24500 remains the major support zone. Contra long positions can be considered on dips near 24600, with a protective stop-loss just below 24450.
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