The index continues to trade below its 5-DEMA, which is currently acting as a strong supply zone - Tradebulls Securities Pvt Ltd
Nifty
Nifty failed to surpass the previous day’s resistance zone near 24330 and extended its decline below the 24000 mark. The index continues to trade below its 5-DEMA, which is currently acting as a strong supply zone. After opening on a positive note, the index slipped below 24000 and eventually closed beneath the previous day’s low of 24080, indicating a lack of buying conviction at higher levels. Earlier in the week, Nifty declined toward 23700, where it formed a Bullish Hammer on the daily chart. However, a firm confirmatory close is still awaited for its activation, and a sustained move below 24028 could negate the formation. In addition, the presence of multiple unfilled gaps on the chart remains a concern and could act as near-term resistance during pullbacks. The immediate hurdle is placed near the 5-DEMA at 24330, and a decisive close above this level may help stabilize the current downtrend and signal the development of a short-term support range. On the indicators front, RSI has slipped into the oversold zone, while ADX near 39 suggests the prevailing trend remains strong. Derivatives data indicates a 23500–24500 range, with 24000 acting as the key pivot.
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