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Nifty

The index commenced the week on a positive note, showing resilience by absorbing disappointing GDP data and mixed global cues. This recovery was driven by select heavyweight stocks across sectors, with momentum further fueled by hopes that the RBI might announce supportive measures in its upcoming policy meeting later this week. Technically, the index is attempting to break above its 50 DEMA resistance at 24,410, supported by last week’s robust recovery. The formation of a bullish harami pattern signals a shift in the support base toward 23,870, providing near-term stability. While the daily RSI reflects improving momentum, a declining ADX suggests a pause in the prior downtrend, though not a reversal. December options data highlights solid support levels at 23,500 and 23,800, with significant resistance at 24,500 and 25,000. A breakout above 24,400 could reignite directional momentum, making aggressive long positions viable. For current positions, traders are advised to use a weekly closing stop-loss near 23,240, with opportunities to add during consolidation. Looking ahead, the December series may witness a "Santa rally," supported by a firm base at 23,000-23,500 and seasonal bullish tendencies. Sustaining above 24,400 aligns with the ongoing secular bull trend on the monthly scale, suggesting further upside potential.

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