Nifty Stays Below 50 DEMA, Signals Continued Weakness - Tradebulls Securities Pvt Ltd
Nifty
Nifty tested the 24040 gap-support zone but remained below its critical 50 DEMA near 24200 throughout the session, signalling continued weakness. Successive narrow-range candles indicate continued volatility compression, while the index remains below its 20 DEMA at 24350, making a recovery above this level crucial to arrest further deterioration. Failure to reclaim 24350 could extend the decline below 24040, with the weekly 0–2 trendline adding significance to this support zone. Momentum remains subdued, suggesting that the corrective phase could remain gradual. A sustained move above 24420 is now essential to revive the bullish structure, whereas a decisive breakdown below 24000 could accelerate weakness towards 23850–23700. On the derivatives front, the OI-PCR has declined sharply from 1.22 to 0.76, while the highest Put OI concentration remains at 24,000, indicating that this level could provide near-term support and create scope for a relief bounce towards 24200. Traders should remain focused on stock-specific opportunities, with fresh aggressive longs considered only after a sustained breakout above 24420. Until then, patience and disciplined risk management remain advisable.
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