Index closed above 5-day DEMA at 24360, showing consolidation - Tradebulls Securities Pvt Ltd
Nifty
Despite early slippages, the index managed to close above its 5-day exponential moving average (DEMA) support at 24360, reinforcing the ongoing short-term consolidation phase. Importantly, there are no signs of trend exhaustion, with price action reflecting a potential short-term squeeze— often a precursor to an upward breakout. Trend strength indicators remain comfortably below overbought levels, and no bearish divergences are visible at this stage. A decisive breakout above the 24350-option cluster could serve as the trigger for the next momentum leg, with a mediumterm target of 25180 for the month. The trading base has shifted higher from 23400 to 24000, establishing a revised support zone and potential stop-loss level for ongoing long trades. However, any breach below 23,960 could indicate short-term exhaustion, prompting a more cautious approach. Bullish flag projections remain intact, targeting 25180, followed by 25400, as long as the 23960 level is held on a closing basis. Momentum traders should continue to hold long positions with trailing stop-losses at 23960 to protect profits while staying aligned with the upside setup. Intraday Levels to watch, strong support zone at 24350–24300 while a move above 24500 could unleash a strong directional thrust, further validating the bullish momentum.
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