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Nifty

Nifty continues to drag lower yet it tried to regain above its 200 DEMA support level of 23500 which also coincides with a key channel pattern support. If the Nifty 50 sustains below 23,500, given the bearish sentiment the decline could extend to 23,200, which coincides with the 50-week EMA. On the upside, the 23,800-23,900 range could act as a resistance zone for the week. However, a positive RSI divergence hints at weakening bearish momentum, though a clear reversal is yet to be confirmed. Options data indicates a range-bound outlook of 23,300–23,700, with strong resistance at 24,000, reflecting cautious sentiment. India VIX cooling from 19 to 13 suggests reduced selling pressure and potential stabilization. The Nifty is expected to consolidate within the 23,300–24,000 range in the short term. Traders can leverage long-short strategies, focusing on range plays, with leverage longs activated only above 24,140. Investors can use this correction to accumulate oversold mega-cap stocks displaying relative strength, positioning for a potential recovery as market conditions stabilize further.

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