Nifty Remains Range-Bound; 24,200 Hurdle, 23,850 Key Support

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

Nifty ended the session at 23,977.95, down 78.05 points (-0.32%), slipping below the crucial 24,000 psychological mark amid profit booking after the recent recovery. The index continues to trade between its 50-DEMA (23,845) and 100-DEMA (24,135), indicating a consolidation phase with no decisive directional breakout.

Technically, Nifty formed a bearish candle and remains confined within its broader 23,850-24,200 trading range. A decisive move above the 24,150-24,200 zone is required to resume the recovery and pave the way towards 24,365.

On the downside, 23,850-23,900 remains the immediate support zone, followed by recent swing lows. A break below 23,850 could trigger fresh selling pressure towards the 23,700-23,600 zone.

The momentum indicator RSI stands at 53.89, remaining above its moving average of 53.06, suggesting momentum is moderating but continues to stay in positive territory.

From Derivatives perspective, the undertone remains cautious. The overall Put-Call Ratio (PCR) stands at 0.76, indicating a relatively bearish bias. While 24,000 continues to hold the highest Put Open Interest, a gradual shift in Put positioning towards the 23,500 strike suggests traders are lowering their support expectations. On the upside, significant Call Open Interest is concentrated at 24,000, 24,100 and 24,200, highlighting these levels as immediate resistance zones for the current expiry.

Overall, Nifty continues to consolidate between its 50-DEMA and 100-DEMA, with the 23,850-24,200 range likely to dictate the next directional move. A sustained move above 24,200 could strengthen the recovery, while a break below 23,850 may invite renewed selling pressure towards 23,700-23,600.

Source : Equity Bulls

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