Index stays strong above 5-DEMA at 23,450, keeping bullish trend - Tradebulls Securities Pvt Ltd
Nifty
Consecutive occurrence of Dojis—this time following a long-legged variant—suggests indecision and fatigue, though not a reversal just yet. The index continues to trade confidently above its 5-day exponential moving average (DEMA) at 23,450, maintaining the higher top–higher bottom structure that underpins the prevailing bullish momentum. This structure remains intact unless a decisive close occurs below this level. The current up move may encounter resistance in the 24,440–24,500 zone. However, a breakout above this band could trigger a swift rally toward the 25,180 level. Options data reinforces this view, indicating strong support at 24,000, followed by 23,500, while upside potential for the May series extends toward 25,000 once 24,500 is taken out convincingly. Importantly, key support has now shifted higher—from 22,900 to 23,400— coinciding with a significant moving average crossover, which further strengthens the bullish setup. Momentum traders are advised to stay long, revising their stop-loss to 23,930. On the technical front, the daily RSI remains below its prior peak of 71.65, leaving room for further upside. Meanwhile, the ADX reading above 31 confirms trend strength, though it also signals that the trend is still in its maturing phase. Traders should exercise caution if the index dips below 23,930 or accelerates too rapidly toward 24,440, which could lead to short-term exhaustion.
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