Nifty Forms Spinning Top Near Demand Zone - Tradebulls Securities Pvt Ltd
NIFTY
The 200 DEMA was decisively defended last week, with Nifty managing to close above this level, thereby reinforcing its significance as a key near-term support. The formation of multiple reversal candlestick patterns—namely a Spinning Top followed by a Bullish Harami—offers early signs of a potential fresh upmove ahead of the event. The proximity of the 200 DEMA at 25160, along with the weekly 50 WEMA placed near 24990, creates a strong demand cluster, making this zone a likely area for termination of the ongoing corrective phase. Options data further corroborates this view, with firm put writing observed around the 25000 strike, while upside positioning remains capped near 25500, suggesting a well-defined trading range. On the upside, 25585 continues to act as a crucial resistance, coinciding with the earlier Bearish Belt Hold formation and reflecting persistent supply pressure alongside short-term trend deterioration. Any meaningful trend reversal will be technically valid only on a decisive and sustained close above 25585. Structurally, recent price action is unfolding near the lower boundary of a broader Broadening Pattern—an area that often precedes sharp directional moves. However, the absence of a clear daily reversal signal keeps the broader setup neutral to cautiously optimistic. From an internal wave perspective, the 25040–24900 zone remains a key potential termination area for the corrective phase, where demand is expected to overpower supply. This setup points toward the possibility of sharp, volatile swings that could eventually culminate in a reversal from lower levels.
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