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Nifty

Nifty has decisively broken out of its recent consolidation, reclaiming its 50 DEMA at 22,990 with strong volume support, setting the stage for its next resistance near the 200 DEMA at 23,400. A strong gap support at 22,900 is likely to attract demand on any pullback, while the upside remains open toward 23,400–23,500, as indicated by options data. Momentum indicators continue to strengthen, with RSI scaling higher at 63 and ADX giving a fresh breakout above 25, signaling strong directional momentum. Additionally, the bullish crossover of the 5 & 20 DEMA at 22,610 makes it an ideal trailing stop-loss level for momentum traders. Given that the rally has already covered 1,300 points, minor profit-booking due to sectoral rotation is expected. However, with the volatility index on the verge of a breakdown, the bullish undertone remains intact. Traders should maintain long positions as long as 22,610 holds on a closing basis, using any dip toward 22,900 or below as a buying opportunity, while reducing longs only if 22,610 is breached. The market remains in a strong uptrend, and traders should ride the momentum while managing risk effectively.

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