Nifty Sees Profit Booking Near 100-DEMA; 24,000 Remains Key Support

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

Nifty snapped its five-session winning streak and ended lower amid profit booking near the key resistance zone of 24,150-24,250. The index failed to sustain above its 100-Day Exponential Moving Average (100-DEMA) placed around 24,150 and slipped back below this level, indicating that sellers remained active at higher levels.

From a price action perspective, the index continues to hold above the crucial 24,000 support zone despite the day's decline. The inability to sustain above the 100-DEMA and resistance near 24,250 suggests that the market may witness some consolidation in the near term before attempting the next directional move. Immediate support is placed at 24,000, followed by 23,880-23,800, while resistance is seen at 24,150-24,250. A decisive move above this zone could reignite bullish momentum towards 24,500.

The RSI has eased to 57.76 from recent highs, reflecting a moderation in momentum while remaining above its signal line, indicating that the broader undertone remains positive.

From a derivatives perspective, sentiment turned slightly cautious with the PCR declining to 0.77. Option data shows significant Put Open Interest at the 24,000 and 23,500 strike, reinforcing it as a key support level. On the upside, substantial Call Open Interest is concentrated at 24,200 and 24,500 strikes, highlighting these levels as immediate hurdles. The higher Call Open Interest relative to Put Open Interest suggests that traders are adopting a cautious approach after the recent rally.

Overall, the index continues to hold its short-term support structure, but a sustained move above the 100-DEMA and the 24,250 zone will be crucial for bulls to regain momentum.

Source : Equity Bulls

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