Nifty index concluded the week above the critical 22800 support level, despite ongoing market weakness - Tradebulls Securities Pvt Ltd
Nifty Chart
Nifty index concluded the week above the critical 22800 support level, despite ongoing market weakness. A decline below 23200 intensified selling pressure, leading to a downward adjustment of resistance from 23610 to 23410, influenced by a bearish crossover in short-term moving averages. Both its trend indicators suggest caution as the daily RSI continues to trend below 50, indicating weak momentum, while its daily ADX has risen above 25, advising support-based buying to be avoided. To regain bullish momentum, the index must surpass the 23410-23500 range. The weekly ADX presents potential downside risks, with the -DI above 25 and the ADX line trending upward. A range-bound movement with a negative bias between 23400 and 22400 is anticipated for the rest of the series. Options data indicates firm resistance at 23300 (previously 23500) and key support levels at 22500 and 22400. Long positions might be considered if the Nifty surpasses 23560; otherwise, further weakness towards 22510-22400 is likely to be witnessed during this week itself.
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