Nifty kicked off the week on a strong footing, opening with a gap above the key 25100 hurdle, reflecting bullish momentum - Tradebulls Securities Pvt Ltd
Nifty
Nifty kicked off the week on a strong footing, opening with a gap above the key 25100 hurdle, reflecting bullish momentum. The gap remained unfilled through the day, reinforcing the strength of the move. However, the index struggled to close decisively above the 25180, a level that now serves as a crucial resistance. Last week's close above 24830, following the RBI’s key monetary policy announcements, underscores the underlying optimism in the market. A follow-through close above 25180 in the early part of this week could trigger further upside, potentially extending the rally towards the upper end of the channel pattern, which lies between 25555 and 25630. On the contrary, a sustained breach below 24700 would signal a failed breakout, increasing the likelihood of a decline towards 24300, aligning with the 50-day exponential moving average (50-DEMA). Options data supports a bullish bias, showing notable unwinding at lower strikes and fresh base formation at 24800 and 25000. Additionally, there's a visible shift in open interest towards the 25200–25500 range, indicating rising expectations of an upward continuation. The ‘Rising Three’ pattern on the weekly chart further adds strength to the bullish setup. Traders may consider aggressive long positions while maintaining a strict stop-loss below 24650. However, inability to sustain above 24800 early in the week would be a red flag, warranting caution and avoidance of high-risk trades. Nifty’s ability to hold above key resistance zones early in the week will be instrumental in confirming the continuation of the ongoing uptrend.
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