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2026-10-27 09:49:07 am | Source: Tradebulls Securities Pvt Ltd
Nifty Ends Four-Day Losing Streak, Faces Resistance at 20-DEMA - Tradebulls Securities Pvt Ltd
Nifty Ends Four-Day Losing Streak, Faces Resistance at 20-DEMA - Tradebulls Securities Pvt Ltd

Nifty

Nifty commenced the week on a positive note, snapping a four-session losing streak and closing near its 5 DEMA at 22730. However, the index continues to trade below its 20 DEMA hurdle at 22832. Monday’s price action remained confined within the previous session’s range of 22370–22790. The bullish Hammer pattern awaits confirmation, with a sustained and confident close above 22865 required to strengthen the recovery and open the way towards 23000–23100. On the momentum front, RSI remains below 50, while ADX is flattening and -DI has slipped below 25, indicating a possible stabilisation in the prevailing downtrend. However, a stronger reversal requires follow-through buying and improving market breadth. Failure to sustain above 22700 could bring 22500 into focus, while a decisive break below 22372 would reopen the downside towards the psychological 22000 mark. The 22865 threshold remains critical for confirming a meaningful recovery.Fresh longs should be considered only after a sustained move above 22865, supported by improving market breadth and momentum. Traders should prioritise capital preservation, maintain disciplined stop-losses and deploy fresh capital selectively. A potential panic bottom must be confirmed by price action before increasing exposure.

 

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