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Nifty

A breakout following the appearance of a ‘Spinning Top’ formation—immediately after a bullish ‘Marubozu’ candlestick—underscores the ongoing strength of the prevailing trend. This setup signals that a strong base is now established at the 21,800 mark, which is likely to hold over the coming months. Meanwhile, the trading base appears elevated toward 22,250, serving as a reliable trailing stop for momentum longs. A strong gap-up opening, followed by a decisive breakout above the 22,850 zone, could further accelerate directional momentum. Until such a move materializes, the index is expected to oscillate within a broader 22,500–22,800 range, with limited downside risk and minimal chances of a significant pullback. Options data adds further conviction, highlighting solid support at 22,500 and 22,300, while leaving the upside open toward 23,000 in the upcoming week. Momentum traders are advised to maintain long positions as long as the 22,250 pattern support holds on a closing basis. However, with volatility anticipated to rise, chasing breakouts may not be the most prudent approach. Intermittent pullbacks are likely to offer more favorable entry points. Aggressive longs should only be considered if the index sustains firmly above the 22,850 mark.

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