Nifty 50 faces key resistance at 25,200 as profit booking intensifies
Technical analysis suggests the Nifty 50 may encounter resistance near 25,200, with support levels around 24,800, as market momentum shows signs of consolidation after a nine-month high.
The Nifty 50 index closed the extended trading week with an 8.4% gain after reaching a fresh nine-month intraday high on November 8 during the Muhurat session. The rally ended a seven-day winning streak, and analysts note that further profit booking and consolidation are possible despite the overall bullish market structure.
Market experts identify 25,200 as the immediate hurdle for the index, followed by a stronger resistance zone around 25,500. On the downside, 24,800 is expected to act as near-term support, with a deeper support zone between 24,400 and 24,300.
Technical indicators show the Nifty 50 forming a small bearish candle with a minor upper shadow, signaling profit taking at higher levels. Nevertheless, the index remains above all major moving averages, which continue to trend upward. The Relative Strength Index eased to 77.42 but stayed well above its signal line, while the MACD maintained an upward trajectory, although its green histogram bar contracted after eight consecutive expansions.
Option data for the week reveal the 25,500 strike holding the largest call open interest (1.23 crore contracts), marking it as a potential short-term resistance point. Conversely, the 24,500 strike leads put open interest (1.18 crore contracts), indicating a possible support level.
The Nifty put-call ratio fell to 1.28 on November 8, down from 1.47 the previous session, reflecting a shift toward bullish sentiment. However, the India VIX rose 5.53% to 18.43, its highest close since May, suggesting heightened caution and the prospect of increased volatility.
Overall, while the broader trend remains bullish, the combination of profit booking, technical signals, and option-market activity points to a near-term range-bound market as traders assess the next move.