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Nifty

Nifty's breakout from its recent consolidation, supported by strong volumes, has propelled it toward the upper boundary of the ending diagonal pattern in the 22,900–23,040 range. The index maintained its upward momentum, approaching its 50 DEMA level of 22,988 and positioning itself for a potential close around this mark. This level also aligns with pattern resistance near 23,040. A strong gap-up and close above 23,100 could accelerate the rally toward the 200 DEMA level of 23,400 within the month. The technical setup remains robust, with the ADX turning positive and nearing 25, while the RSI trends comfortably above 50, signaling strengthening momentum. Options data indicates a shift in the trading range to 22,800–23,100 for the day, with a breakout above 23,040 potentially triggering a sharp short squeeze, especially as VIX nears a fresh breakdown below 13. Given these indicators, traders should stay cautiously optimistic. A decisive move beyond 23,040 would confirm bullish sentiment, while 22,500 now serves as a key momentum-based stop-loss for long positions.

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