Lower-gap pattern signals fragile market amid global tensions - Tradebulls Securities Pvt Ltd
Nifty
Recurring lower-gap formations continue to signal a fragile market structure amid persistent geopolitical uncertainties. This week’s sharp 900- point pullback was completely sold into within a single session, as Nifty slipped below Monday’s support at 22955, though it managed to close just above the key psychological level of 23000. The ongoing sequence of downward gaps remains a concern. A fresh gap near 23620 now acts as immediate resistance. Earlier, the index attempted to fill the gap around 23840, aligning with the 10-DEMA resistance zone, but failed to sustain and resumed its downward trend. A breakdown below 23500 dragged the index back toward the 23000-support zone, where a Piercing Line pattern is placed, indicating a likely range-bound phase within a broader downtrend. Options data suggests a near-term range between 23000 and 23500. Technically, indicators remain mixed. ADX is trending higher, signalling strong trend strength, while RSI is rebounding from oversold levels, hinting at short-covering rather than fresh buying. A breach below 23000 could open downside towards 22700–22400, while resistance stands near 23630.
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