Nifty failed 24700, closed below it but held 20WEMA at 24560 - Tradebulls Securities Pvt Ltd
Nifty
Nifty showed ambition to reclaim the 25000-level last week but failed to defend the crucial 24700 support, eventually closing the week below it while managing to stay above its 20 WEMA support at 24560. Options data for the fresh series highlights 24500 as the immediate support, followed by 24000, whereas 25000 remains a key hurdle that holds the trigger for a potential reversal. Technical indicators continue to signal weakness, with ADX above 39 indicating strong downward momentum and RSI below 40 reflecting a bearish undertone. However, oversold conditions on the OI PCR readings point to the possibility of a short-term rebound. India VIX remains subdued below 12, keeping volatility low, though any rise in VIX coupled with improving OI PCR could spark bargain hunting early in the August series. A decisive move below 24500 would confirm a channel breakdown, increasing the risk of deeper declines. Until a clear reversal pattern emerges, traders are advised to adopt a long-short strategy while maintaining strict risk management.
Please refer disclaimer at https://www.tradebulls.in/disclaimer
SEBI Registration number is INZ000171838
