Nifty remains range-bound below 50-DEMA, Resistance near 24,000 keeps upside capped

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

Nifty witnessed another subdued and range-bound trading session, as the benchmark failed to attract strong follow-through buying and settled marginally lower by 6.55 points at 23,907.15 (-0.03%). The index continued to face resistance near the falling 50-DEMA placed around 23,998, indicating sustained supply pressure at higher levels and cautious sentiment among traders. Technically, the index remains in a time-wise consolidation phase after the recent recovery from lower levels. The 23,980-24,000 zone has emerged as an immediate resistance cluster, while the broader hurdle remains near the key 0.50 Fibonacci retracement level of 24,264.

On the downside, the previous resistance zone of 23,800-23,770 has now turned into an important support base, highlighting selective accumulation on dips. Momentum indicators are gradually stabilizing, with the daily RSI placed near 51.35, reflecting improving internal strength but lack of aggressive momentum expansion. India VIX declined sharply by 7.13% to 14.98, signaling easing volatility and controlled market conditions. From the derivatives perspective, PCR stands near 0.85, indicating a slightly cautious undertone. Significant call writing is visible in the 24,000-24,200 strike region, while put writers continue defending the 23,900-23,800 zone. Overall, the index remains trapped inside a broader consolidation band, and only a decisive breakout on either side of the range is likely to trigger the next directional move in the market.

Source : Equity Bulls

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DerivativesAnalysisReport Nifty SAMCOSecurities