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Nifty

Nifty extended its strong upward momentum on Thursday, surging to close above 24500 mark, marking another session of decisive buying interest. The consecutive gap-up sequence reflects sustained bullish participation, with the index now approaching a major overhead congestion zone at 24770–25115. The broader market advance was also supportive, with Bank Nifty outperforming and market breadth remaining positive. Daily RSI has moved into the overbought zone, signalling strong buying momentum, while ADX has climbed to 35, indicating strengthening trend intensity. Although the overbought reading raises the possibility of intermittent profit-booking, the rising ADX suggests that the underlying trend remains firmly positive. The latest gap support near 23,870 is the immediate make-or-break level for sustaining the current buying momentum. This zone is also in close proximity to the 5 DEMA, making it a critical reference for traders. Options positioning indicates 24500 as an immediate support zone, while a sustained move below 23870 could weaken the bullish structure and invite deeper consolidation. The 24770–25115 zone represents a major congestion and supply area. A decisive breakout above this band, supported by followthrough buying, could open the way for further upside. However, the 24800–25000 range is likely to keep supply pressure elevated, particularly as the market approaches the weekly expiry. The near-term bias remains strongly bullish, but the sharp rally and overbought RSI warrant caution against chasing elevated prices. Traders should monitor the 23870 gap support closely and prefer selective buying on orderly intraday dips. Sustained strength above 24500 would help preserve the positive setup, while disciplined trailing stop-losses are essential amid the possibility of heightened expiry-related volatility.

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