Indecisive Momentum: Nifty Stays Trapped Between 24,500 and 25,000

Nifty Market Overview

The Nifty index remained largely directionless on the second weekly expiry of the September series, extending its consolidation phase while oscillating within a well-defined trading corridor. Despite intraday volatility with sharp two-way swings, the index managed a rebound from intraday lows.

On the daily chart, a long-legged Doji-like candlestick pattern emerged, signaling sustained buying interest at lower levels while reinforcing the prevailing range-bound sentiment.

• RSI hovered near the neutral 50 mark, reflecting indecisive momentum.
  
  
• Nifty ended with a modest gain of 95.45 points at 24,868.60.
  
  
• The index defended the 24,700 zone, supported by the 20-DEMA and 50-DEMA cluster.
  
  
• This also marked the 7th straight session where Nifty closed above the prior day’s low, suggesting the absence of aggressive bearish pressure.
  
  

From a broader perspective, 24,500–25,000 continues to define Nifty’s range, and a decisive breakout beyond this band will be required to generate meaningful directional momentum.

 Derivatives Snapshot

The derivatives market reflected cautious optimism with a slight edge to call writers over put writers.

• 25,000 strike saw the highest Call OI build-up at 55.13 lakh contracts, cementing it as a firm resistance zone.
  
  
• On the downside, 24,800 strike recorded the highest Put OI at 42.30 lakh contracts, confirming it as a crucial support base.
  
  
• Fresh call writing near current levels signals limited conviction for a strong upside.
  
  
• Persistent put writing at the ATM strikes suggests a neutral-to-defensive bias.
  
  
• The Put-Call Ratio (PCR) improved to 0.92 from 0.76, hinting at sustained sideways action with a mild tilt toward bullish positioning.
  
  

 Volatility Check

• India VIX eased 1.14% to 10.68, reflecting cooling volatility.
  
  
• The subdued VIX suggests consolidation rather than panic-driven trading.
  
  
• Market participants are refraining from aggressive hedging, indicating cautious optimism despite the lack of a clear trend.
  
  

 Market Outlook

• Resistance Zone: 25,000 (psychological barrier + 0.786 Fibonacci level).
  
  
• Support Zone: 24,500–24,400 (20 & 50-DEMA cluster).
  
  
• RSI near 50 reaffirms the neutral-to-indecisive momentum.
  
  

 A sustained move above 24,900 could trigger short covering, paving the way for a possible rally toward 25,200+. A breakdown below 24,500 may open the door to a fresh bearish leg, pulling the index lower.

Until then, sideways action is likely to dominate, favoring a “range trading” strategy with 24,400 as the floor and 24,900 as the ceiling.