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Nifty

The index had a strong start to the week, displaying resilience in the face of conflicting global signals and poor GDP figures. Across all industries, a few heavyweight equities spearheaded this rebound, with IT and banking taking the lead. With the help of last week's strong rebound and the development of a bullish harami pattern, which indicates a shift in the support base towards 23,870, the index has technically tried to break above its 50 DEMA resistance around 24,410. A falling ADX indicates a halt in the previous decline but not a total reversal, while the daily RSI shows increasing momentum. Options data for December shows resistance between 24,500–25,000 and firm support at 23,800–24000. A breakout above 24,400 is probably going to rekindle directional momentum. It is recommended that traders keep their weekly closing stop-loss close to 23,240 and think about increasing positions when the market is consolidating. Maintaining above 24,400 could be consistent with the monthly chart's secular bull trend and seasonal bullish tendencies of a "Santa rally," which are bolstered by a solid base above 23,500.

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