Nifty, Bank Nifty face sell-off, slip below averages, hint weakness - Tradebulls Securities Pvt Ltd
Nifty
After a brief rally, both Nifty 50 and Bank Nifty witnessed renewed selling pressure, failing to hold short-term moving averages—a signal of nearterm weakness. Nifty continues to face stiff resistance around the 25250–25300 zone, where aggressive Call writing is visible, while 25000 remains a crucial support backed by high Put open interest. Technically, 24930 aligns with the 50-DEMA, offering further support. The Nifty PutCall Ratio (PCR) stands at 0.76, and Bank Nifty’s at 0.84—oversold territory—suggesting potential for a sharp rebound from the 25000–24930 zone. A breakout above 25255 may push Nifty toward 25300. Volatility remains subdued, with India VIX under 12. Without a spike in volatility, the market may stay rangebound. Until Nifty closes above 25250–25300, consolidation is likely. A breakdown below 25000 may open the door to 24900. Bank Nifty holds above its short-term averages, but a breach of the 20-DEMA near 56800 could accelerate the correction. The broader range for the week is seen between 24950 and 25900, with resistance at 25550. Traders may hold long positions above 25080 and consider adding above 25330.
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