Bearish Belt-Hold, Spinning Top Signal Caution Near 24,500 - Tradebulls Securities Pvt Ltd
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Last week's Bearish Belt-Hold candlestick formation, followed by a Spinning Top near the crucial 24500 resistance zone, had signalled growing indecision after the recent up move. Yesterday's sharp decline confirmed this caution, with the index decisively breaching the 24250 gap support and thereby negating the near-term bullish momentum. With the failure of the 24,250 support, the next meaningful base is now placed around 23800. A sustained breach below this level would weaken the prevailing bullish structure and significantly increase the probability of a deeper corrective phase. From a technical perspective, momentum indicators have also deteriorated following yesterday's sharp sell-off. A period of consolidation or cooling off is now essential to allow these indicators to recalibrate before any meaningful recovery can emerge. Conversely, a follow-through close below 23800 could accelerate the ongoing downside momentum. Given that the 24000 support has now been breached, the earlier buy-on-dips strategy should be put on hold. Fresh long positions should be considered only after a decisive reversal signal or a strong base formation confirms that bullish momentum has been restored.
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