Nifty Extends Winning Streak, Holds Firm Above Key 24,000 Support

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

Nifty continued its positive momentum and closed at 24,085.70, gaining 96.55 points (+0.40%). The index extended its advance for the fourth consecutive session and managed to sustain above the psychologically important 24,000 mark. Despite witnessing some intraday profit booking near higher levels, the index maintained its positive bias and closed firmly above key short-term support zones, reflecting steady buying interest.

From a technical perspective, Nifty is currently trading above the immediate resistance zone of 24,000-23,900, which has now turned into a crucial support area. However, the index continues to trade below its 100-DEMA placed near 24,465, making this moving average the next major hurdle for the ongoing recovery. The recent price action suggests that the market is gradually attempting to build a base above 24,000, but a decisive move beyond the 100-DEMA would be required to strengthen the medium-term trend and trigger a broader upside extension.

Momentum indicators have improved considerably over the last few sessions. The Daily RSI has risen to 60.87, the sharp improvement in RSI from lower levels suggests increasing participation on the long side, while the absence of any negative divergence keeps the near-term undertone constructive.

The derivatives setup also points towards a balanced-to-positive undertone. The option chain shows a strong concentration of Put Open Interest at 24,000 strike, highlighting aggressive put writing and making it an important support base for the current series. Notably, the 24,500 strike has emerged as a significant zone where both Call Open Interest are substantial, indicating that market participants are positioning this level as an important reference point for the ongoing expiry cycle. The Put-Call Ratio (PCR) stands at 1.0736, indicating a relatively balanced derivatives structure with a slight positive bias. Overall, Nifty's ability to sustain above 24,000, improving momentum readings, supportive derivatives positioning and continued accumulation near support levels indicate that the short-term bias remains positive.

Going forward, 24,000-24,020 is likely to act as an immediate support zone, while 24,300-24,500 remains the key resistance band. A decisive move above the 100-DEMA and the 24,500 zone could strengthen the recovery and pave the way for a move towards higher levels in the coming sessions.

Source : Equity Bulls

Keywords

SAMCOSecurities Nifty DerivativesAnalysis