Nifty consolidates within previous week's range; 23.8K hurdle caps upside momentum

Derivatives Analysis Report - Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities

Nifty witnessed a choppy and range-bound week, as the benchmark continued to oscillate within the previous week's trading range, reflecting lack of decisive follow-through momentum at higher levels. The index closed at 23,719.30, up 64.60 points (+0.27%), but continued to trade below the falling 20-DEMA near 23,836, indicating persistent supply pressure and cautious sentiment in the broader market.

On the daily chart, the index is attempting to stabilize near the 23,600-23,500 support zone, while repeated rejection around 23,800 highlights strong overhead resistance and absence of aggressive buying conviction. The weekly structure also points toward consolidation after the recent corrective phase, suggesting the market is currently undergoing a time-wise correction rather than preparing for an immediate directional breakout.

Momentum indicators continue to reflect neutral undertones, with the daily RSI placed near 47.19 and weekly RSI around 42.69, indicating lack of strong bullish momentum despite selective recovery attempts. India VIX remained subdued near 17.82 despite a volatile trading week, signalling controlled volatility and absence of panic-driven selling pressure.

From the derivatives perspective, PCR stands near 1.01, reflecting balanced positioning between call and put writers. Significant call writing is visible near the 23,800-24,000 strike region, which continues to act as a strong resistance cluster, while put writers are actively defending the 23,500-23,300 zone, keeping downside risk protected for now. Overall, the broader structure suggests that the index remains trapped inside a wider consolidation band, and till the time Nifty sustains below the crucial 23,800 resistance zone, a cautious range-bound bias with stock-specific and range-trading approach is likely to remain the preferred strategy for the current market setup.

Source : Equity Bulls

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