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Nifty

The index showed signs of profit booking as it approached the 50 DEMA resistance at 24,370, following a robust recovery earlier in the week. The dip below the 5 DEMA support of 24,070 saw a reversal around 23,900, signaling resilience despite consolidation. While the daily RSI reflects improving momentum, a declining ADX suggests a pause in the down trend. A breakout above the 50 DEMA resistance zone of 24,400 could reignite directional momentum. December options data highlights solid support at 23,500 and 23,800, with significant resistance levels at 24,500 and 25,000. Traders should consider aggressive long positions if the index breaks above 24,400. For current positions, a weekly closing stop-loss near 23,240 is recommended, with opportunities to add during consolidation. Looking ahead, the December series may witness a potential "Santa rally," supported by a firm base at 23,000-23,500 and seasonal bullish tendencies. A decisive breach of 24,400 could trigger higher momentum, aligning with secular bull trend which is still ongoing as per its monthly scale.

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