Nifty Set To Consolidate Between 24,500–25,200 As Bulls Hold Ground: SEBI RA Mayank Singh Chandel

SEBI-registered analyst Mayank Singh Chandel maintained a broadly constructive outlook for the Nifty 50 in the week ahead, even as the index ended the previous week with a mild 0.67% loss. 

Despite volatile sessions, the Nifty held above crucial support levels, forming a weekly candle with a pronounced lower shadow — an indication that buyers continued to defend lower levels. 

This price action reaffirmed the continuation of the broader uptrend, with the index sustaining a pattern of higher highs and higher lows on the weekly chart.

Technically, Nifty is trading well above both its 20-week and 50-week exponential moving averages, reinforcing the long-term bullish structure. 

Chandel identified the immediate resistance zone between 25,000 and 25,200, a region that has recently attracted selling pressure. 

He adds that a strong breakout above 25,200 could serve as a catalyst for a rally toward the 25,500–25,800 range. On the downside, the 24,500–24,600 area stands out as a robust demand zone, supported by heavy put writing and repeated successful defenses by buyers.

Momentum indicators added to the optimism, with the weekly RSI hovering near 60, signaling healthy underlying strength and scope for further upside if a breakout materialized. 

Market structure hinted at ongoing accumulation, with participants buying into dips, particularly as long as the index remained above the 24,500 level.

Options data reveals a tug-of-war at the 25,000 strike, with the highest call open interest there and a solid put base at 24,500, while a put-call ratio near 1 signals a balanced but slightly bullish undertone.

Chandel highlighted that on the sentiment front, foreign institutional investors turned somewhat cautious, trimming their long positions and adding to shorts, as evident from a declining long-short ratio. 

However, domestic and retail investors continued to provide support, absorbing supply and keeping the market buoyant.

Overall, Chandel expects the Nifty to consolidate within the 24,500–25,200 range in the coming week, awaiting a breakout trigger. 

He believes that the trend remains positive as long as 24,500 holds, with a close above 25,200 likely to spark renewed buying, while a breach below 24,500 could open the door to a deeper correction toward 24,100

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