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Nifty

Nifty currently stands at a pivotal juncture, showing potential for a bullish reversal. However, for a confirmed trend shift, a solid close above the 24,540 mark is necessary. A "Piercing Line" pattern near the 23,800 level has recently reinforced the channel pattern’s support, indicating buyer strength at lower levels. A decisive break above 24,540 on a consistent closing basis would validate the trend reversal, providing a clear directional cue. Technical indicators add weight to this setup. The daily RSI is demonstrating positive divergence, supported by a two-point alignment that hints at waning bearish momentum. This divergence could play a stabilizing role, helping to absorb any near-term downside pressures. Options data saw a shit from the 24,300–24,000 range towards 24,000-23500 zone. Additionally, there’s a lower shift in the monthly ceiling towards the 24,500–24,300 zone, reflecting continuation of weakness. The cooling of India VIX from 19 to 13 points toward reduced selling pressure, contributing to a more favorable trading environment. Given these factors, traders may consider a balanced longshort strategy. A weekly close above the 24,540 would strengthen the case for a substantial upward trend, until then expect the index to oscillate within the channel pattern range placed at 24300-23500 itself.

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