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Nifty

Nifty continued its sideways consolidation below the critical 5 DEMA level of 23,350, highlighting persistent bearish sentiment. Despite showing some respite, the index failed to close above this pivotal resistance, which is essential for unlocking a pullback rally. The formation of an "Inside Bar" pattern and testing of the weekly option base at 23,000 signal a potential reversal on the horizon. However, caution remains warranted as the ADX indicates stronger bearish momentum, and the RSI shows a steady decline in relative strength. Option data suggests a downward shift in the trading range to 22,800–23,800, with key support at 23,300 and 23,000, while resistance holds firm near 23,800. Until the index decisively breaches the 24,260 level, long positions should be avoided. A long-short strategy aligned with the 20 DEMA at 23,840 appears prudent. With earnings season introducing volatility, expect range-bound action between 22,800 and 23,800, with 23,500 serving as the midpoint.

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