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23-10-2024 10:25 AM | Source: Tradebulls Securities Pvt Ltd
The daily RSI is approaching the oversold zone, and the 60-minute RSI is showing positive divergence - Tradebulls Securities Pvt Ltd

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Nifty

The index has seen a further decline, breaking below the crucial 24,700 support, which invalidated the reversal pattern, and also dropped beneath the 24,500 level. If it sustains below this level, the index could be dragged further towards the next support zone near 24,160 for the week. This current area has multiple support zones, ranging between 24,500 till 24,160. The daily RSI is approaching the oversold zone, and the 60-minute RSI is showing positive divergence, reducing the conviction for further selling pressure. On the contrary, a low OIPCR ahead of the expiry day suggests caution and hints at a potential short-covering move. Additionally, the conviction among option writers on the put side remains weak, while there's noticeable call concentration around 25,000, followed by 24,800, indicating strong resistance levels. Given the significant corrective action already witnessed from the index's life-highs, long-term investors may find the demand zone between 25,000 and 24,500 appealing for building positions, especially if the bullish trend gains strength. However, for now, a cautious stance is advisable until clearer signals emerge for more directional trades.

 

 

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