Traders should favour selective long positions only after a confirmed breakout above 22800 - Tradebulls Securities Pvt Ltd
Nifty
Nifty’s close above 22600 marks a significant improvement in price structure, while a sustained close above 22800 remains essential for the recovery to develop into a convincing trend reversal. The recent rebound appears consistent with the emerging positive price–RSI divergence, although RSI remains below the crucial 50 mark. A sustained move above 22800, accompanied by RSI reclaiming 50 and improving market breadth, would strengthen the bullish case and open the way towards 23000–23360. Derivatives positioning has also improved following Tuesday’s rally, with Put OI additions and Call OI unwinding indicating a shift towards a more supportive near-term setup; however, the 23000 strike remains an important resistance to watch. Traders should favour selective long positions only after a confirmed breakout above 22800, while monitoring 22600 as an important intraday reference. Failure to sustain above this level could lead to consolidation or renewed selling. Until the index confirms a breakout, maintain disciplined position sizing and avoid chasing the rebound.
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