Technical Overview:
The Nifty 50 closed lower at 24,549, forming a bearish candlestick with an upper shadow, indicating selling pressure at higher levels. The index remains in the range of 24,500–24,700, with immediate support at 24,500, followed by 24,350 and 24,200. Resistance levels are observed at 24,700, with further upside potential toward 24,900–25,000.
Key moving averages:
- The 20-day EMA has crossed above the 100-day EMA, suggesting a medium-term bullish setup.
- The index remains above all major EMAs, which is a positive sign, despite today’s weakness.
Options Data Insights:
- Maximum Call OI: 25,500, 25,000 (resistance zones).
- Maximum Put OI: 24,000, 24,500 (support zones).
- Significant writing at: 24,600 (on both call and put sides), reinforcing a tight trading range.
Trade Setup for Tomorrow:
- Bullish View:
- If Nifty sustains above 24,620, look for long positions targeting 24,700 and possibly 24,775–24,800.
- Use a stop-loss below 24,500.
- Bearish View:
- If Nifty breaks 24,500, consider short trades with targets at 24,350 and 24,200.
- Place a stop-loss above 24,620.
- Range-bound Strategy:
- With volatility persisting, consider deploying short straddles or iron condors at 24,500–24,700 for limited risk and range-bound profit.
Market Sentiment:
The sentiment is cautious with no strong triggers. Traders should focus on the breakout levels (24,500 or 24,700) for clear direction and manage risk with strict stop-losses.