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Nifty

After a sustained six-day decline, Nifty staged a smart recovery from its intraday low near 22,798, ultimately closing 27 points lower than the previous session. While the broader trend remains bearish, the bullish spike candlestick formation signals a potential rebound. However, trend strength indicators remain weak—RSI continues descending towards 40, while ADX has broken out above 25, indicating caution and potential further weakness. Additionally, the weekly RSI remains below the 50-zone, reinforcing the possibility of extended weakness throughout this series. Stronger trend confirmation will be crucial before shifting the outlook. Until then, a sell-on-rise strategy remains favorable. Options data suggests firm resistance at 23,500, which has now shifted lower to 23,300, while support levels are seen at 22,800 and 22,500. Long positions should only be considered if Nifty sustains above 23,560. Investors should monitor earnings outcomes closely and explore opportunities in beaten-down stocks within their portfolios.

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