Buyers Trapped as Nifty Forms Shooting Star; Weak Bias Near-Term

The Nifty ended the week with a shooting star candlestick on the weekly chart, signaling fatigue at higher levels. Friday's sharp 213.65-point decline to 24,870.10 not only wiped out gains from the previous four sessions but also created an evening-star-like setup, reinforcing a bull trap scenario.

Key Technical Levels

• Support: 24,800 (50-DEMA + 20-DEMA + gap support)
  
  
• Resistance: 25,000–25,100 (immediate), 25,150 (swing high)
  
  
• Bias: Sideways-to-weak unless Nifty decisively reclaims 25,150.
  
  
• Range Watch: 24,800–25,150 → expect choppy, muted trade inside this band.
  
  

The daily RSI holds just above 50, indicating sideways momentum rather than directional strength.

Derivatives Snapshot

• 25,000 CE: Heavy call writing (1.85 Crore OI) → strong overhead supply.
  
  
• 24,500 PE: Highest put OI (73.63 lakh) → near-term support, but shifting lower.
  
  
• PCR: Dropped to 0.61 (vs 1.01 earlier) → reflects rising supply pressure.
  
  

Volatility Check

• India VIX: +3.12% at 11.72. Despite global jitters, volatility remains muted → favors consolidation over deep correction.
  
  

Market Outlook

The Nifty is caught in a "sell on rise" zone. Unless it crosses 25,150, upside momentum will stay capped. Sustaining above 24,800 is crucial to avoid further downside. Traders should remain cautious, playing the range with light positions, and watch for a breakout beyond 25,150 (bullish) or breakdown below 24,800 (bearish) for the next trend.