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Nifty

Nifty appears to be at a critical turning point, showing resilience after seven consecutive weeks of decline. A strong rebound on the final day of the week enabled it to close above the 200 DEMA support at 23,540, while also validating the support zone around 23,500–23,300 within its ongoing Declining Channel Pattern. This recovery is accompanied by a bullish reversal candlestick pattern on the weekly chart, signaling a potential trend shift. The index now seems poised to extend its gains towards the upper end of the channel pattern near 24,140. A decisive breakout above this resistance could propel Nifty towards its pattern target zone of 24,940, with a minor hurdle expected around 24,160. Traders could consider building aggressive long positions once the index scales above 24,140, while investors are advised to adhere to 23,240 as a crucial stop-loss level on a weekly closing basis for existing long positions. The coming week is expected to see Nifty in a strong short squeeze mode, followed by fresh long additions, supporting the anticipated upward move.

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