Nifty continues to hover around the critical 24,700 zone following last week’s inability to hold this level - Tradebulls Securities Pvt Ltd
Nifty
Nifty continues to hover around the critical 24,700 zone following last week’s inability to hold this level. Despite closing below, it earlier, the index managed to sustain above its 20-week EMA (24560), preserving its broader structural integrity. Yesterday’s trading session remained confined within the previous day’s range of 24740–24540, reflecting indecision among market participants. From the derivatives perspective, options data indicates that 25000 remains the key resistance level, which holds the trigger for any potential bullish reversal. On the downside, immediate support is positioned at 24700, with a breach below 24500 likely to confirm a channel breakdown and increase the risk of deeper declines. Technical indicators are offering mixed cues. While the ADX continues to stay elevated above 42, signaling an overstretched trend, the RSI has formed a bullish crossover at 40, suggesting a possibility of strength in the near term. Additionally, oversold conditions reflected by the OI PCR readings indicate a short-term rebound could be on the cards. Volatility remains subdued, with India VIX trading below 12. However, traders should remain vigilant; any spike in volatility coupled with an improving OI PCR could ignite bargain hunting in the early part of the August series. Going forward, market participants should closely monitor
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