Nifty Struggles Near 25,200; Analysts Flag Key Support Zones
The Nifty50 index has been facing resistance near 25,200, as technical indicators suggest a fading bullish momentum. Despite the recent rally, the index has struggled to break above this critical level, prompting analysts to highlight key support zones that could come into play if the market corrects.
The Nifty50 has been trading within a narrow range of 25,000-25,350, with the index currently hovering around 25,180. The resistance zone of 25,205-25,350 remains a hurdle for the bulls, and a break above this level could lead to further gains. However, the technical setup suggests that the market may be due for a correction, and analysts are advising caution ahead of the July expiry.
Key Support Zones to Watch
Analysts are flagging key support zones at 25,000 and 24,900, which could come into play if the market corrects. A break below these levels could trigger fresh selling, and the Nifty50 could test the 24,700-24,800 range. The 50-day exponential moving average (EMA) is currently at 24,950, which could act as a cushion for the index.
Technical Indicators Suggest Fading Momentum
The Nifty50’s technical indicators are showing signs of fading bullish momentum. The Relative Strength Index (RSI) is trading in neutral territory, while the Moving Average Convergence Divergence (MACD) is showing a bearish crossover. The index’s momentum has been slowing down in recent sessions, indicating that the market may be due for a correction.
Option Data Suggests Range-Bound Setup
Option data is indicating a tight range-bound setup for the Nifty50, with a majority of the open interest (OI) concentrated between 25,000 and 25,200. This suggests that traders are expecting the index to trade within this range ahead of the July expiry. The OI at 25,000 has increased significantly, indicating that traders are building up positions at this level.
Caution Ahead of July Expiry
Traders are advised to exercise caution ahead of the July expiry, as the Nifty50’s technical setup suggests that the market may be due for a correction. The key support zones at 25,000 and 24,900 need to be watched closely, as a break below these levels could trigger fresh selling. On the upside, the resistance zone of 25,205-25,350 remains a hurdle for the bulls, and a break above this level could lead to further gains.
Conclusion
The Nifty50 has been struggling to break above the 25,200 level, as technical indicators suggest a fading bullish momentum. Analysts are flagging key support zones at 25,000 and 24,900, which could come into play if the market corrects. Option data suggests a tight range-bound setup, with traders expecting the index to trade within the 25,000-25,200 range ahead of the July expiry. Traders are advised to exercise caution and watch the key support zones closely, as a break below these levels could trigger fresh selling.
Source: https://stocktwits.com/news-articles/markets/equity/nifty-levels-to-watch-jul-23/ch8w985R5tt
