Inside Bar Pattern Signals Near-Term Consolidation - Tradebulls Securities Pvt Ltd
Nifty
Formation of an Inside Bar candlestick pattern on the daily chart suggests the likelihood of near-term consolidation. Despite elevated volatility, Nifty has managed to hold above the 24000 mark, reflecting resilience at lower levels. The immediate technical requirement is to reclaim the 24350 gap zone, which is expected to act as the first major resistance, followed by 24420. A sustained move above these levels would reaffirm 24000 as a meaningful support while preserving the broader market structure above the crucial 23800 base. Momentum indicators remain neutral and do not yet indicate a clear directional bias. A phase of consolidation is therefore necessary for these indicators to reset before any sustainable recovery can unfold. On the downside, a decisive close below 23800 would weaken the broader market structure and raise the risk of an extended corrective phase. Following the recent breach of the 24000 support zone, the earlier buy-on-dips strategy should remain on hold. Fresh long positions should be considered only after the index confirms a decisive reversal or establishes a strong base, signalling the return of bullish momentum.
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