IGI Logo

Nifty

Nifty commenced the week on a negative note with a gap-down opening, testing its weekly option base at 23,000. The index continued its downward trajectory but formed an ‘Inverse Hammer’ near the support base, signaling potential indecision even while short selling. Trend indicators highlight the need for caution, as the daily ADX trends higher, reflecting stronger bearish momentum, while the RSI continues its steady decline, indicating weakening relative strength. Option data suggests a downward shift in the trading range, now projected between 23,800 and 22,800, with critical support zones at 23,300 and 23,000. Given the index's struggle to regain strength, traders are advised to avoid long positions unless the 24,260-resistance level is decisively breached. A long-short strategy remains prudent until the index closes above 23,840, aligning with the 20-day exponential moving average (20 DEMA). As the earnings season unfolds, increased volatility is expected, making a cautious approach essential for market participants. Hence expect broad range action within the option threshold band of 22800-23800 for the next few sessions with 23500 being the mid-point of the range.

Please refer disclaimer at https://www.tradebulls.in/disclaimer

SEBI Registration number is INZ000171838