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Nifty

The much-anticipated breakout from the recent short-term squeeze finally materialized this week, with the index surging toward the 25000 mark. Yesterday’s pullback appears to be a typical corrective move following the sharp price rally. Momentum is expected to resume once the index sustains above 24860. Options data suggests a shift in the support base from 24000 to 24500, with a near-term support cluster now forming around 24800. On the upside, resistance levels have expanded toward 25500. Technically, the recent upmove confirms a breakout from a bullish flag pattern, projecting a potential target near 26550. However, the resistance zone between 25180 and 25630 could pose challenges for momentum traders. On the indicators front, the daily RSI has triggered a positive crossover, and the ADX at 23 is nearing the critical 25-mark— above which it would confirm the strength of the ongoing trend. Momentum traders should consider adding long positions on dips, with a trailing stop-loss below 24450 on a closing basis. Fresh entries may be considered once the index decisively breaks above the 25180–25630 caution zone.

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