Nifty Holds 24,000 despite Pullback

Technical Analysis Report - Om Mehra, Technical Research Analyst, SAMCO Securities

Nifty ended the session at 24,013.10, down 0.64%. However, the index continues to hold above the psychologically important 24,000 mark and remains comfortably above both its 20-day and 50-day SMAs.

On the weekly chart, the index gained 1.65% during the week, marking its strongest weekly performance since April, while continuing to hold the gap-up zones.

The recent pullback has brought the index closer to the 0.236 Fibonacci retracement level at 23,920.

The RSI is placed at 58, easing slightly from its recent highs but remaining comfortably above the midpoint level.

The 24,220-24,250 zone remains the immediate resistance area, and a decisive close above this band could pave the way for a fresh breakout toward 24,350. On the downside, 23,900, followed by 23,850, remains the key support zone to watch if the pullback extends further.

Nifty Bank ended the session at 57,685.75, down 0.48% on the day. However, the index continues to hold above all its key moving averages, indicating that the broader uptrend remains intact despite the minor pullback.

On the weekly chart, the index formed a classic doji after gaining 1.53% during the week, reflecting indecision at current levels following the strong multi-week rally from the recent swing low. The index also remains well above its previous swing high of 57,457 on the daily chart.

The RSI is at 68, easing marginally from its recent overbought zone while still reflecting strong momentum.

The 58,700 level, which coincides with the 127.8% Fibonacci extension, remains the next upside target. A decisive close above 58,000 could open the door for a move toward this level. On the downside, 57,400, followed by 57,000, remains the key support zone.

Source : Equity Bulls

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