Breakout hit as index surged from squeeze, eyeing the 25000 mark - Tradebulls Securities Pvt Ltd
Nifty
The much-anticipated breakout from the recent short-term squeeze materialized yesterday, with the index surging toward the 25000 level. As expected, momentum intensified above the 24500-option cluster due to unwinding pressure from option writers who were caught off guard. Options data now reflects a shift in the support base from 24000 to 24500, with an immediate support cluster emerging at 24800. On the upside, resistance bounds have expanded toward the 25500 level. From a price pattern perspective, the recent move confirms a breakout from a bullish flag formation, projecting pattern targets around 26550. However, a resistance cluster between 25,180 and 25630 is likely to act as a caution zone for traders chasing momentum. On the indicator front, the daily RSI has triggered a positive crossover, while the ADX is currently at 23— approaching its breakout threshold of 25. A sustained move above this level would validate the strength of the ongoing directional momentum for the remainder of the series. Momentum traders are advised to continue adding long positions on dips, with a trailing stop below 24,450 on a closing basis. Fresh positions can be revived once prices decisively move into the 25180+ caution zone.
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