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Weekly Report : Nifty did continue to slide lower below its 5 WEMA resistance level along with its 20 WEMA support - Tradebulls Securities Pvt Ltd
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NIFTY WEEKLY
* Recovery & close above the 24000 support is a sign of early strength & diminishing bearish momentum
* Nifty did continue to slide lower below its 5 WEMA resistance level along with its 20 WEMA support. Only a firm close above the 24470 level on weekly basis would amplify the short covering mode.
* Immediate level to track on the upside stands at 24540 insync with the progressing trend within the channel. Channel range now placed at 24500-23700.
* Trend strength indicators on weekly scale remain neutral as ADX tuns to trend higher at 19 while RSI despite price trending continued to hold itself above its 50 level
* Consecutive weekly close above 24540 would signal the reversal in strength of the ongoing trend while momentum traders could chase momentum once the breakout is confirmed
* Options data implies that the range may shift from 24,000–24,500 toward 25,000 as the November series unfolds, showing positive sentiment among traders
* If Nifty holds above 24,500, it could establish a stable base, offering favorable entry points for early November trades in the 24,000–24,500 zone, potentially marking the start of a broader uptrend.
NIFTY DAILY
It seems the index is poised at a pivotal stage with potential signs of bullish reversal, yet it still requires solid confirmation above 24540. The "Piercing Line" pattern near 23,800 is a promising base which also coincides with the channel pattern support zone. However, breaking above 24,540 on a consistent closing basis is essential for a clear trend reversal. The daily RSI's positive divergence with the two-point support hint at weakening bearish momentum, which could stabilize any downside pressures. With options data indicating a 24,300–24,500 trading range and strong support around 24,000, it's wise to monitor these levels. A shift in the monthly ceiling towards 25,000–25,200 suggests an improved sentiment, especially as India VIX cooling from 19 to 15 implies reduced selling pressure. For now, traders may adopt a cautious long-short strategy. If the index manages a weekly close above 24,460–24,560, it would likely affirm a more substantial upward trend, warranting increased long positions beyond 24,600 for a more aggressive stance.
