Trade Setup for April 24: Nifty signals bearish form; Caution RSI easing

The Nifty 50 index closed 0.7% higher on April 23, marking its 7th straight day of gains. However, it ended the day with a bearish reversal pattern—a Hanging Man-type candlestick—which may hint at a possible short-term correction.

Key takeaway: If this pattern confirms on April 24, traders should watch out for profit booking or sideways consolidation, especially as April's F&O expiry approaches.

Key Market Levels:

Nifty 50 (Closed at 24,329)

Resistance: 24,361 / 24,417 / 24,509

Support: 24,178 / 24,121 / 24,030

Key Zone: 24,000 – High Put OI zone = strong support

Upside Target (if rally continues): 24,500–24,550

Bank Nifty (Closed at 55,370)

Resistance: 55,901 / 56,122 / 56,480

Support: 55,186 / 54,965 / 54,608

Special Candle: Bearish Belt Hold formed at higher levels

Caution: RSI easing, momentum indicators weakening

Options Data Highlights:

Nifty Options

Max Call OI: 25,000 (key resistance)

Max Put OI: 24,000 (key support)

Call Writing: 24,300 & above

Put Writing: 24,200, 24,300

Bank Nifty Options

Max Call OI: 56,000

Max Put OI: 55,000

Call Writing: 56,000–56,500

Put Writing: 55,300 & 54,000

Market Sentiment Indicators:

Put-Call Ratio (PCR): Stable at 1.1 – mildly bullish

India VIX: Jumps 4.8% to 15.96 – rise in volatility; caution advised

Momentum: RSI and MACD still positive but showing signs of fatigue

Derivatives Data:

Long Buildup: 68 stocks

Long Unwinding: 31 stocks

Short Buildup: 35 stocks

Short-Covering: 88 stocks

High Delivery Stocks: Indicates investor interest (not just trading)

F&O Ban: RBL Bank stays in ban list; Manappuram exits

Expert Note: While the broader trend remains bullish, the near-term setup is flashing caution. Watch the 24,000 level on Nifty and 55,000 on Bank Nifty as critical supports.