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Nifty

Nifty registered yet another narrow-ranged candlestick formation close to the critical base of 22,510-22,410, indicating a pause in momentum. The deterioration of this base could lead to a further unwinding of positions, but as of now, the critical support where some stability can be expected stands around the 22,400 mark. On the flip side, multiple hurdles from 23,040 towards 23,100 need to be surpassed with strong price action to confirm any reversal in trend in the upcoming series. The failure to reclaim the 5 DEMA on an immediate basis indicates persistent selling pressure, while the daily RSI trending below 30 and a strengthening ADX further confirm the weak undertone. With resistance now lowering from 23,210 to 23,040 and support sliding to 22,400-22,500, the downside risk remains elevated. Option data reinforces this view, with strong resistance at 23,000 and key support at 22,500, increasing the probability of a downward breach. While a decisive move above 23,040 could trigger a relief rally, the overall trend favors a sell-on-rise approach unless Nifty sustains above 23,210. Given the end of earnings season, a stock-specific strategy focusing on accumulating fundamentally strong yet oversold counters may be a prudent approach in this volatile environment.

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