Bullish Candlestick Formation Keeps Recovery Hopes Alive - Tradebulls Securities Pvt Ltd
Nifty
The formation of yet another bullish reversal candlestick pattern near the key support zone continues to support the possibility of a rebound. However, repeated failures to sustain above the 23500-resistance level keep upside expectations restrained. Momentum indicators remain a concern, with RSI slipping further below 40, reflecting weak bullish momentum. At the same time, ADX rising above 30 indicates strengthening trend intensity, which currently tilts the bias toward the downside unless key resistance levels are reclaimed. In the near term, 23500 remains the immediate resistance, followed by 23650, while the broader structure continues to be consolidative. A decisive close above 23800 is crucial to negate prevailing weakness and improve the near-term outlook, especially as this level coincides with the 50 DEMA, making it a key sentiment reversal zone. On the downside, a breach below immediate support could accelerate selling pressure toward 23105, aligning with the retracement level of the April rally from 22182 to 24602. Additionally, the unfilled gap near 23150 is likely to act as a strong accumulation zone, potentially attracting fresh buying interest. Overall, while momentum indicators suggest caution, the index’s ability to hold critical support levels, along with improving undertones in the broader market, indicates a cautiously constructive outlook. A disciplined, level-based approach with a focus on fundamentally strong stocks remains essential to capitalize on emerging opportunities.
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