Nifty Attempts Bottom Formation Near 24,300; Recovery Depends on 24,500 Support

Nifty Rebounds 1.17% After Finding Support Near 24,300

The Nifty 50 index witnessed a strong rebound in the latest session, closing 285.40 points higher (+1.17%) at 24,765.90. The recovery came after the index found buying interest near the 24,300–24,350 support zone, a level that acted as a crucial demand area during the session.

Technically, the index formed a morning star reversal pattern on the chart and registered two consecutive higher lows, which indicates early signs of stabilization after the recent correction.

However, despite the rebound, the Nifty remains below its 200-day exponential moving average (200-DEMA) near 25,231, suggesting that the broader market trend still carries a cautious undertone. The current rise appears to be more of a technical pullback rather than a confirmed trend reversal.

Nifty Technical Analysis: Resistance Levels Ahead

From a technical perspective, the Nifty index has bounced from the 24,300 demand zone and is now moving toward key resistance levels.

Important resistance zones include:

• 25,080: 0.382 Fibonacci retracement level
• 25,320: 0.50 Fibonacci retracement level and falling 10-DEMA

The 25,320 region could act as a major supply zone, where selling pressure may re-emerge if the index fails to sustain momentum.

Momentum Indicators Show Early Improvement

Momentum indicators suggest that short-term sentiment is improving slightly.

• RSI (Relative Strength Index) has rebounded from the oversold region, but it still remains below 40, indicating that the recovery is still in an early stage.
• A break above the day’s high could trigger short covering, potentially pushing the index toward higher resistance levels.

This suggests that while buyers have stepped in near support, strong confirmation of trend reversal is still pending.

Nifty Options Data Signals Key Support at 24,500

The derivatives data highlights key levels that could determine the next move in the market.

• Put–Call Ratio (PCR): Around 0.92, indicating relatively balanced positioning.
• Call open interest: Concentrated at 24,800 and 25,000, creating near-term resistance.
• Put writing: Active around 24,500, establishing it as a strong immediate support level.

Options positioning suggests traders expect range-bound movement in the near term.

Key Support and Resistance Levels for Nifty

Based on technical and derivatives analysis, the Nifty index is likely to trade within a defined range in the short term.

Important levels to watch:

• Immediate Support: 24,500
• Major Support: 24,300
• Immediate Resistance: 25,080
• Major Resistance: 25,320

If the index sustains above 24,500, it could extend the recovery toward 25,080–25,320. However, a break below 24,500 could once again expose the index to downside risk toward 24,300.

Conclusion

The Nifty 50 index is showing early signs of bottom formation near the 24,300 zone, supported by improving price action and a technical reversal pattern. However, the 24,500 level remains a crucial pivot that could determine the next directional move.

For now, the broader outlook remains cautiously optimistic, with the possibility of a technical pullback toward higher resistance levels, provided the index continues to hold above key support.