Nifty Reclaims 23,800, Signals Strength - Tradebulls Securities Pvt Ltd
Nifty
Nifty began the week on a strong footing, reclaiming the 23800 level and closing back above its 5 DEMA, signalling an improvement in near-term sentiment. The index is now approaching the key 24000 resistance, where even a modest breakout could trigger a sharp bout of short covering. OI data for the day is showing neutral sentiment with balanced PCR at 1.02. Strong put accumulation (+3.5Cr) vs calls (-48.7L) indicates defensive positioning with max pain placed at 24000. Momentum indicators remain mixed. The daily RSI is attempting to move back above the 50 mark, while the ADX is rebounding from an extreme low and the -DI remains elevated above 36, suggesting the broader corrective trend has not yet fully reversed. A sustained move above 24040 could reset the bullish mode for a follow through move towards 24200, which is essential to confirm a meaningful recovery and revive bullish momentum. Failure to hold above 23800 could once again expose the index to the 23500–23450 support zone, while only a sustained breach below 23400 would weaken the broader market structure. Traders should avoid aggressive long positions until Nifty sustains above 24200 and continue focusing on stock-specific opportunities. Investors may maintain staggered accumulation in fundamentally strong stocks, while deploying fresh capital more aggressively only after a confirmed breakout above key resistance levels.
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