Nifty’s Six-Day Winning Streak Faces Key Test at 200-DEMA

AHMEDABAD, 3 AUGUST: Nifty gained 66.45 points (+0.27%), extending its recovery for the sixth consecutive session while registering yet another, higher high, reflecting sustained buying interest.

Technically, the index has reached its crucial 200-DEMA, where it formed a Doji candlestick, indicating indecision after a sharp rally and suggesting that follow-through price action will be critical in confirming the next directional move. The RSI strengthened to 59.21, remaining comfortably above the neutral 50 mark and signalling improving momentum.

From the Derivatives perspective, India VIX declined to 11.81, indicating that market volatility remains well contained despite the recent advance. The option chain continues to reflect a constructive setup, with maximum Put Open Interest concentrated at the 24,000 strike, followed by 24,350, reinforcing a strong support base. On the upside, maximum Call Open Interest is concentrated at the 24,600 strike, followed by 25,000, highlighting the immediate resistance zone where Call writers remain active. The Put-Call Ratio (PCR) stands at 1.49, reflecting strong Put writing and a favourable derivatives structure.

Technically, 24,280–24,300 remains the immediate support zone, followed by 24,100, while 24,370–24,400, coinciding with the 200-DEMA, continues to be the key resistance area ahead of 24,600. A decisive close above the 200-DEMA would confirm a fresh breakout and strengthen the ongoing bullish trend.

Nifty Bank Holds Above 200-DEMA; Consolidation Signals Underlying Strength

Nifty Bank gained 117.35 points (+0.21%), extending its gradual recovery while continuing to sustain above its 200-DEMA, indicating that the broader technical structure remains constructive. The index is consolidating just below the 57,300-57,400 resistance zone, suggesting accumulation after the recent rebound.

The RSI has improved to 50.54, moving above the neutral 50 mark and indicating a gradual pickup in momentum.

From the Derivatives perspective, India VIX eased to 11.81, reflecting a stable volatility environment. The option chain remains cautiously positive, with maximum Put Open Interest concentrated at the 57,000 strike, followed by 56,000, reinforcing a strong support base. On the upside, maximum Call Open Interest is concentrated at the 58,000 strike, followed by 59,000, highlighting the immediate resistance zone where Call writers remain active. The Put-Call Ratio (PCR) stands at 0.86, suggesting improving sentiment, although traders continue to maintain a cautious stance.

Technically, 57,000–56,530 remains the immediate support zone, followed by 55,700, while 57,300–57,400 is the immediate hurdle ahead of 58,000. A sustained move above the immediate resistance zone could strengthen bullish momentum and pave the way for an extension of the ongoing recovery toward higher levels. – REPORT BY Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities

Technical Analysis Report: Broad-Based Rally Lifts Nifty to a Strong Weekly Close

Nifty ended the session at 24,383.60, up 0.27%, extending its gains for the third consecutive session. The index closed the week 2.59% higher and posted a 2.17% gain for the month.

Nifty continues to hold above its 20-day and 50-day SMAs, reflecting a supportive near-term setup. The rally widened through the session, with mid cap and small cap stocks also participating in the upward move.

The RSI has moved up to 59, reflecting strong momentum behind the ongoing rally. India VIX settled at 11.75, indicating that market volatility remains subdued. Market breadth stayed favourable throughout the session, supporting the broad-based rally.

On the upside, 24,550, followed by 24,660, remains the key resistance zone for Nifty. On the downside, 24,220 acts as the immediate support.

Nifty has rebounded strongly from recent lows and appears to have further room to move higher.

Nifty Bank ended the session at 57,264.85, up 0.21%, forming a small-bodied candle while continuing to trade below its 20-day SMA, placed at 57,500.

The index remains within its broader trading range, with no clear directional bias.

The index closed the week with a gain of 1.00%, while ending the month with a loss of 0.48%.

The RSI is placed at 51, reflecting a neutral to positive outlook.

On the downside, 56,950 remains the first support, followed by 56,800. On the upside, 57,550 remains the immediate resistance, followed by 57,800. – Om Mehra, Technical Research Analyst, SAMCO Securities

(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing.)

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