IGI Logo

Nifty

Nifty continues to encounter resistance near its 5 DEMA, currently trending lower around 22,970. Despite consistent efforts throughout the week, the index has failed to close above this crucial short-term average, which has acted as a supply zone for the past six sessions. A bearish configuration of short-term moving averages has shifted resistance lower, from 23410 to 23210 for the week. The daily RSI has slipped below 40, while the ADX is rising at 29, signaling caution for long positions. For the final days of this series, immediate resistance lies at 23040-23210, which must be decisively breached to trigger a meaningful pullback or relief rally. Until then, expect range-bound movement with a negative bias, with a likely breach towards the 22,510 zone. A stronger trend confirmation remains essential before shifting the outlook. A sell-on-rise strategy continues to be favorable, with options data indicating firm resistance at 23000 (earlier 23300) and key support at 22800 and 22500. Long positions should only be considered if Nifty sustains above 23210. Investors are advised to closely monitor earnings outcomes and seek opportunities in oversold stocks, ensuring a balanced and cautious approach to the current market setup.

Please refer disclaimer at https://www.tradebulls.in/disclaimer

SEBI Registration number is INZ000171838