Nifty 50 - Analysis

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August 2025

05 August 2025 : Nifty Head & Shoulders Breakdown: Technical View and Strategy for August 2025

Nifty shows classic Head & Shoulders breakdown with RSI divergence. Explore key levels, moving averages, support zones, and a practical option selling

Nifty Option Chain Analysis: Strong Resistance at 25200, Support Near 24400

First Chart Alt Text: "Nifty 50 daily candlestick chart with Head and Shoulders pattern, moving averages (20, 50, 100, 200), neckline breakdown, and RSI bearish divergence as of August 4, 2025."

In today’s Nifty 50 option chain analysis for 22 July 2025, the data reflects a bearish sentiment developing at higher levels, with visible resistance building near 25200–25300 strikes and strong support seen at 24700. Traders expecting a fall from 25000 to 24500 can capitalize on this move with an option selling strategy. This article explores detailed open interest changes, resistance-support zones, H&S pattern dynamics, and a risk-defined strategy setup for maximum return on capital.

Support and Resistance Zones

Strike PriceCall OIPut OIChange in Call OIChange in Put OIZone
2530094,5532,839+10,013-1,355Strong Resistance
252001,37,6226,855+12,135+3,063Resistance
2500043,02410,383+2,306+1,582Pivot/Transition
247007,49114,626+393+4,791Support
245004,98220,193+205+6,730Strong Support

Technical View and H&S Breakdown

The chart pattern indicates a potential Head and Shoulders (H&S) breakdown near 25000. The neckline appears around 24850–24900. A close below this level can trigger fast selling to 24500. RSI is below 50, MACD is bearish, and price is hugging the lower Bollinger Band, indicating continued downside pressure.

Chart Analysis (Nifty 50, Aug 4, 2025)
Head & Shoulders Pattern – Is it a potential Head & Shoulders (H&S) pattern. Here's the breakdown:

Left Shoulder (LS): Formed around 25,000–25,100, likely mid-June.

Head: Peak near 25,650, in early July.

Right Shoulder (RS): Again around 25,000, in late July.

Neckline: Sloping upward, drawn roughly connecting lows near 24,400–24,500.


 Price has broken below the neckline and is currently retesting the underside of it. This is classic H&S behavior.
Moving Averages:

MA Type Level Bias

20-SMA ~25,037 Price below – bearish
50-SMA ~25,046 Price below – bearish
100-SMA ~24,410 Testing now – important support
200-SMA ~24,048 Next key support

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In conclusion, the Nifty option chain for 22 July 2025 suggests that 25200–25300 remains a firm ceiling for bulls, while 24700–24500 could be the battleground for buyers. Using a risk-defined option selling spread can help you profit from the likely fall while protecting your capital. Stay disciplined and trade with defined stop-losses based on levels shared above.

I’m Praveen Kumar, a seasoned Technical Analyst and stock market trader with over 25 years of experience in the Indian equity and derivatives markets. My passion for numbers and patterns led me to a dual career as a Mathematics Teacher and market technician. I specialize in Technical Analysis, with deep expertise in Elliott Wave Theory, derivatives strategies, and market forecasting. Over the years, my analysis and market views have been featured on NDTV Profit as a financial guest, along with published articles on reputed financial web portals, sharing insights on Nifty 50, Bank Nifty, and stock market trends. As a trader and analyst, I focus on interpreting price action, chart patterns, wave counts, and technical indicators to deliver precise market levels and actionable trade ideas. My approach blends classical charting with modern analysis tools to help traders navigate market volatility. Through VieCapital, I aim to share daily market analysis, trading strategies, and educatio…
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