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Nifty

Nifty ended the week on a strong footing, staging a rebound from its recent swing-low support at 24340 and closing above the prior weekly close. This move resulted in the formation of a 'Bullish Engulfing' reversal candlestick, signalling a potential trend shift. Importantly, the index has managed to break its six-week declining trend, with the weekly RSI crossing above 50—a positive sign of improving momentum. On the daily timeframe, RSI has also broken its downward trendline corresponding to swing highs, further validating the emergence of fresh trend strength in the coming sessions. It has broken out of its recent lower-high, lower-low sequence within the Falling Wedge, indicating the possibility of a trend shift. The RSI bullish crossover underpins improving momentum, with immediate upside targets placed at 24860–25050. In the latest session, the index managed a decisive close above the 24600 thresholds, also sustaining above its 5-DEMA for the second time last week—an encouraging short-term signal. On the derivatives front, fresh Put writing is visible at 24500, establishing it as immediate support for the week, followed by 24300. On the upside, the 25000 strike carries heavy Call OI concentration, making it the key resistance zone for the coming week. A sustained move beyond 25000 could accelerate momentum further. Hence long positions to be retained with a stop below 24340 on weekly closing basis.

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