Nifty Holds Between Key Moving Averages for Third Day - Tradebulls Securities Pvt Ltd
Nifty
Nifty retained its oscillation within a sandwiched range between two key moving averages for 3 consecutive days, with its 50-WEMA at 24360 acting as immediate resistance and the 50-DEMA at 24190 holding as pivotal support. The index finally displayed confidence to surpass the hurdle of 24360 for the first time, with its RSI displaying a positive crossover above the 50 mark, signalling improving momentum to be witnessed in the upcoming days. Rollover data remains encouraging, with 77% rolls versus the 3-month average of 74% for Nifty, while Bank Nifty rollovers remain firm at above 79% versus an average of 76% over the past few expiries. This reflects a constructive undertone going into the new september series.Nifty is now poised to regain meaningful directional momentum, with a decisive breakout and sustained move above the 24350–24400 resistance zone being crucial this week. A successful breakout would reinforce the prevailing bullish setup and potentially pave the way for an upmove towards 24740–24950 during the upcoming series. On the macro front, the sharp decline in crude oil prices remains supportive for equities. A sustained break below $84/bbl could further complement the bullish momentum in equity markets. On the downside, a decisive close below 24180 would weaken the current momentum and increase the probability of an extended corrective move towards 23850. Traders should continue to focus on stock-specific opportunities, while fresh aggressive longs should preferably be considered only after a sustained breakout above 24420. Until then, patience and disciplined risk management remain advisable.
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