Nifty Trapped in Sideways Range; 24,400–24,800 Emerges as Crucial Zone

The Nifty index continues to struggle for a clear direction, oscillating within a tight range of 24,400–24,800. Despite early gains, selling pressure from overhead moving average clusters has kept the index subdued. On Tuesday, Nifty slipped 45.40 points to close at 24,579.60, holding marginally above the psychological 24,500 mark.

Key Technical Levels

• Support: The 24,350–24,400 band is emerging as a strong base. Holding above this level is critical to prevent deeper corrections.
  
  
• Resistance: On the upside, 24,800 remains the biggest hurdle, coinciding with the 20- and 50-day EMAs, which are capping rebound attempts.
  
  
• Momentum: The daily RSI is hovering around 40, reflecting weak bullish conviction and subdued momentum.
  
  

📌 Takeaway: The market is likely to witness sharp swings between support and resistance as buyers defend the lower band and sellers dominate at higher levels.

Derivatives Snapshot

The options market mirrors this cautious undertone:

• Call Writing: Heavy activity at the 25,000 strike (58.60 lakh contracts) reinforces it as a strong resistance ceiling.
  
  
• Put Writing: The 24,500 strike holds the highest put open interest (51.28 lakh contracts), marking immediate support.
  
  
• PCR (Put-Call Ratio): Dropped from 1.12 to 0.81, indicating rising supply pressure and limited confidence in a sustainable upside move.
  
  

Volatility Check

The India VIX edged higher by 0.95% to 11.40, but the subdued levels indicate consolidation rather than panic. Traders appear cautious yet not aggressively hedging, reflecting a wait-and-watch sentiment.

Market Outlook

Nifty remains locked within the 24,400–24,800 sideways band, with both call and put writers clustering positions around these levels. A decisive breakout above 24,800 could trigger short covering and open the door to further upside momentum. Until then, the sideways bias dominates.

🔑 Strategy for Traders: Consider a range trading approach with 24,400 as the floor and 24,800 as the ceiling. Sell near resistance, buy near support, and remain cautious of potential whipsaws.