05:35:21 PM IST, 06 Jan 2025
Tech view: Nifty charts present mixed outlook for markets. How to trade tomorrow
As the Nifty index closed below the crucial 200 DEMA, technical indicators present a mixed outlook for the market. The Relative Strength Index (RSI) currently stands at 40.7, trending downward, indicating bearish momentum. In contrast, the Stochastic RSI showed a bullish crossover, hinting at a potential short-term recovery. This divergence in indicators suggests caution, as the market lacks a clear directional bias.
The Nifty faced strong selling pressure throughout the session, struggling to sustain above the immediate resistance level of 24,000. It closed below 23,700 and breached the 200-day Exponential Moving Average (EMA), signaling a bearish trend. If the index fails to hold above current levels, further corrections could lead to the next support levels at 23,270 and 23,000. However, a decisive breakout above 24,000 remains critical to revive bullish momentum, said Mandar Bhojane of Choice Broking.
In the open interest (OI) data, the highest OI on the call side was observed at 24,000 and 24,200 strike prices, while on the put side, the highest OI was at 23,600 strike price followed by 23,300.