Nifty broke 25550–25450 range, slipped below 25450 5-DEMA - Tradebulls Securities Pvt Ltd
Nifty finally breached its narrow consolidation range of 25550–25450 after eight consecutive sessions, slipping below the 5-DEMA support at 25450. This breakdown opens the possibility of a retest of the 20-DEMA support near 25270, while the broader consolidation zone of 25000–25700 remains intact. A sustained breach below 25230 could trigger a deeper corrective phase. Conversely, a decisive breakout above 25550 is essential for a further move toward 26000. Until such confirmation, the index is likely to remain range-bound. Options data suggests strong support in the 25300–25000 zone, with notable resistance emerging around 25600–26000 for the upcoming week. Despite short-term consolidation, the broader trend remains bullish as long as Nifty holds above 25030 on a weekly closing basis. Technical indicators remain constructive, with a rising ADX and the RSI sustaining above the 50 mark, both supporting the strength of the prevailing trend. The strategy remains to deploy aggressive long positions only on a breakout above 25730, or if the index revisits its support zone near 25,000. Until then, traders should remain stock-specific with long bias, and continue to adopt a buy-on-dips approach, with a close watch on the 25030 weekly support level.
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