Bullish Hammer Fails to Spark Expected Rebound After Bullish Belt Hold Near Key Support - Tradebulls Securities Pvt Ltd
Nifty
The presence of a bullish Hammer candlestick following an earlier Bullish Belt Hold formation near the same support failed to trigger a meaningful rebound within the expected 23300–24000 range. Trend strength indicators remain a concern. The RSI continues to trade below 50, indicating lack of bullish momentum, while the ADX moving above 25 signals strengthening trend intensity—tilting the bias towards the downside unless key resistance levels are reclaimed. In the near term, 23500 acts as immediate resistance, followed by 23650, while the broader structure continues to remain in a consolidation phase. A decisive close above 23800 is critical to negate the current weakness and improve the near-term outlook, as this level also aligns with the 50 DEMA, making it a key sentiment reversal zone. On the downside, a breakdown below immediate support could accelerate selling pressure towards 23105, which coincides 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 remain mixed and warrant caution, the index’s ability to hold key support levels, coupled with improving undertones in the broader market, suggests a cautiously constructive outlook. A level-based approach remains essential, with focus on strong fundamentals to capitalize on emerging opportunities.
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