Last week, Nifty confirmed renewed weakness by breaking below the 24100 support and slipping beneath its 50 DEMA - Tradebulls Securities Pvt Ltd
Nifty
Last week, Nifty confirmed renewed weakness by breaking below the 24100 support and slipping beneath its 50 DEMA. The index subsequently failed to move above the Spinning Top candlestick high, signaling continued indecision before breaking below the 23800 support. The breach of 24000 triggered fresh long unwinding, resulting in the gap support near 23650 being filled. Momentum indicators continue to favor the bears. The daily RSI has slipped below the 50 mark, while the ADX is rebounding from an extreme low and the -DI has risen above 36, indicating strengthening downside momentum. Unless the index stages a decisive recovery above 23800, the corrective phase could extend towards the 23500–23450 zone. Immediate reversal levels are placed at 24040, followed by 24200. These should serve as stop-loss levels for existing short positions and key markers to assess any meaningful recovery. Traders should avoid aggressive long positions until Nifty sustains above 24200 and instead focus on stock-specific opportunities. Investors may continue staggered accumulation of fundamentally strong stocks, while deploying fresh capital more aggressively only after a confirmed breakout. A sustained breach below 23400 would weaken the broader market structure and warrant a defensive stance with tighter risk management.
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