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Nifty

After the robust rebound early this week the index faced profit booking pressure near its 50 DEMA level of 24370. The expiry adjustment pressure mounted once the index slipped below 5 DEMA support of 24070 during the day as the index decisively at 23900 far below the consolidation support zone of 24130. On the indicator front a declining ADX is a sign for consolidation despite the improving RSI on its daily scale. The directional momentum is expected to resume once the index breaks above its 50 DEMA resistance zone of 24400. Options data at the beginning of the December series indicates a firm support base at 23500 followed by 23800 while upside highest clusters are placed at 25000 followed by 24500. Hence traders should consider building aggressive long positions as the index approaches key breakout levels. While investors to maintain a weekly closing stop-loss at 23,240 for existing long positions & add more during the ongoing consolidation. With a firm base established at 23,000 followed by 23,500, and supported by the December seasonality effect, the index holds the potential for a Santa rally during the December series. A breakout above the key resistance level of 24,400 could act as a trigger for this anticipated upward momentum, aligning with historical trends of positive market performance during the holiday season.

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