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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 further suggests that the 24,300–24,500 zone is a key trading range, with robust support around 24,000. Additionally, there’s a possible shift in the monthly ceiling towards the 25,000–25,200 zone, reflecting an improvement in market sentiment. Supporting this, the cooling of India VIX from 19 to 15 points toward reduced selling pressure, contributing to a more favorable trading environment. Given these factors, traders may consider a balanced long-short strategy. A weekly close above the 24,460–24,560 range would strengthen the case for a substantial upward trend, encouraging traders to adopt an increased long position beyond 24,600, signaling a more aggressive approach aligned with positive market momentum.

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