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Yesterday’s consecutive close above its 5 DEMA threshold, along with the daily RSI moving above its previous swing level of 40, indicates improving relative strength in the market. From a tactical perspective, traders are advised to remain flexible, as a developing 3-point Price- RSI divergence on the daily chart could trigger a short-term recovery. A decisive move above the 23,000 level was awaited, which could potentially open the path towards 23,430. Notably, yesterday’s close above the key 23,000 CE OI cluster has set the tone for a possible short-covering rally, pushing the index towards the 23,430 zone, where the 20 DEMA is positioned. However, macroeconomic factors continue to weigh on sentiment. Elevated USD/INR levels, firm crude prices above $90, persistent FII outflows, and ongoing geopolitical tensions may keep any pullback vulnerable. Traders should remain cautious in the 23,430–23,600 zone and consider profit booking at higher levels, with a strategy to re-enter at lower levels. The broader structure remains constructive as long as the index sustains above the 22,630 mark during the current series.

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