Nifty Rebounds on Short Covering; Key Resistance Seen Near 24,400–24,500

Nifty Gains 0.97% After Recent Selling Pressure

The Nifty 50 index staged a recovery after recent weakness, closing at 24,261.60, up 233.55 points (+0.97%). The rebound came as buying interest emerged from lower levels, helping the index recover from the recent decline.

On the price chart, two consecutive hammer candlestick patterns near the 24,000 support zone indicate that buyers are returning at lower levels, suggesting short-term stabilization in the market.

However, the broader market structure still reflects a lower-high formation, implying that selling pressure may continue to appear during rallies.

Nifty Technical Analysis: 24,400–24,500 Emerges as Key Resistance

Technically, the index is now approaching the 24,350–24,400 zone, which previously acted as a strong support level but has now turned into an immediate resistance band.

Additionally, Nifty continues to trade below its key moving averages, including:

• 20-DEMA
• 200-DEMA

This keeps the near-term market outlook cautious despite the recent rebound.

Key Levels to Watch

Support Levels

• 24,000 (major support zone)

Resistance Levels

• 24,350 – 24,400 (immediate resistance)
• 24,500 (strong resistance from options data)

Momentum Indicators Show Early Signs of Recovery

Momentum indicators suggest that the market is recovering from oversold conditions, although bullish momentum remains limited.

• RSI (Relative Strength Index) has rebounded from the oversold zone but remains below the 40 level, indicating that momentum is still rebuilding.

These signals suggest that the current recovery could be a technical bounce rather than a confirmed trend reversal.

Options Data Highlights Key Range for Nifty

From the derivatives perspective, the Put–Call Ratio (PCR) stands around 0.87, reflecting a cautious sentiment in the options market.

Open interest data indicates strong positioning around key levels:

• 24,500 Call Strike: Around 23.82 lakh contracts, marking it as a major resistance zone
• 24,000 Put Strike: Around 29.22 lakh contracts, reinforcing it as a strong support base

This positioning suggests that Nifty may trade within a broader range of 24,000–24,500 in the near term.

Market Outlook

As long as Nifty holds above the crucial 24,000 support, a short-covering bounce may continue, particularly if global and geopolitical tensions ease.

However, the broader market structure still indicates supply on rallies, meaning that moves toward the 24,400–24,500 zone could attract fresh selling pressure.

Until the index decisively breaks above the 24,500 resistance level, the market is likely to remain range-bound with intermittent volatility.