Nifty 50 Bounces Back Ahead of F&O Expiry: Key Levels and Technical Outlook
Market shows signs of gradual improvement as Nifty 50 climbs above the 100-day EMA, signaling potential upward momentum in the upcoming sessions.
Nifty 50 gained 0.54% on August 13, maintaining higher lows for the third consecutive session. Experts highlight support at 24,589 and resistance near 24,850, with bullish technical indicators pointing to a cautiously positive trend.
Nifty 50 Overview – Positive Momentum Ahead of Weekly F&O Expiry
The Nifty 50 index rebounded on August 13, posting a 0.54% gain as it maintained a higher lows formation for the third consecutive session. This recovery comes just ahead of the weekly Futures & Options (F&O) expiry scheduled for August 14, indicating cautious optimism among traders.
The index’s rise above the 100-day Exponential Moving Average (EMA) at 24,589 is a key positive signal, though market participants are closely watching whether this level can act as sustainable support. If the index holds above this threshold, the immediate target remains at 24,700, followed by the crucial resistance zone of 24,800–24,850.
Technical Indicators Signal Gradual Improvement
Candlestick Analysis
On the daily chart, Nifty 50 formed a bullish candle with both upper and lower shadows, suggesting range-bound trading with a positive bias. While momentum remains moderate, the formation indicates that buyers are gradually regaining control, and the market is slowly inching towards higher levels.
Bollinger Bands & Midline Target
The index appears to be moving closer to the midline of the Bollinger Bands, which could become a target if Nifty decisively crosses the 24,700 mark. This movement may indicate stabilization in price action after a brief consolidation phase.
RSI and Stochastic RSI
Technical oscillators are signaling improvement:
- The Stochastic RSI has maintained a bullish crossover and entered the upper band, suggesting positive momentum in the short term.
- The Relative Strength Index (RSI) at 44.13 also showed a bullish crossover, indicating strengthening market sentiment.
MACD Analysis
Although the MACD and signal line remain below the zero line, the fading histogram weakness hints at a potential shift toward a more positive trend. This could reinforce the upward trajectory if confirmed in the coming sessions.
Support and Resistance Levels to Watch
Market experts highlight the following key levels for traders and investors:
- Immediate Support: 24,589 (100-day EMA)
- Next Key Support: 24,465 (Tuesday’s low)
- Immediate Resistance: 24,700
- Crucial Hurdle: 24,800–24,850
Maintaining above these support levels is crucial for the index to pursue its upward journey toward the resistance zones. Failure to hold could result in consolidation or minor corrections before attempting another breakout.
Market Sentiment and Outlook
The Nifty 50’s gradual improvement is fueled by cautious optimism ahead of the weekly F&O expiry. While the index shows bullish technical patterns, overall momentum remains moderate, suggesting that traders should watch key technical levels closely before making major positions.
Analysts suggest that if Nifty decisively breaks past the 24,700 zone and sustains above 24,800, it could signal the beginning of a stronger upward phase. Conversely, any significant dip below the 100-day EMA could indicate renewed short-term weakness.
The Nifty 50’s rebound reflects a market that is slowly regaining momentum, supported by higher lows and positive technical indicators. Traders should focus on critical support at 24,589 and resistance near 24,850 while monitoring key oscillators like RSI, Stochastic RSI, and MACD for confirmation of a sustained bullish trend.
As the weekly F&O expiry approaches on August 14, market participants can expect heightened volatility, making adherence to technical levels crucial for managing risk and capturing potential gains.
