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Nifty

Nifty witnessed sharp intraday swings and eventually formed a Spinning Top candlestick near the anticipated demand zone of 25040, indicating heightened indecision after a corrective phase. This level was defended convincingly, as the recovery enabled the index to close above its 200 DEMA placed near 25160, reinforcing the importance of this support zone in the near term. On the upside, the index faces a critical hurdle at 25585, corresponding to the Bearish Belt Hold candlestick resistance. This zone continues to reflect strong supply pressure and short-term trend deterioration. Any meaningful change in trend will be technically valid only if Nifty decisively breaches and sustains above 25585 on a closing basis. Structurally, the recent candlestick formation has emerged near the lower boundary of a broader Broadening Pattern, a region that typically precedes sharp directional moves. However, a clear reversal confirmation on the daily scale is still awaited, keeping the broader setup neutral to cautiously optimistic. From an internal structure perspective, the corrective wave analysis highlights 25040 as a potential termination zone, where demand is expected to overpower supply. This aligns well with options data, which indicates a range shift towards 25500–25000 for the final leg of the current series. The data reflects a mild bullish bias, suggesting a strong support pocket within this zone and raising the probability of sharp, volatile swings that could eventually culminate in a reversal. Nifty witnessed sharp intraday volatility and formed another Spinning Top candlestick near the anticipated demand zone above its 200 DEMA at 25160, highlighting elevated indecision following the recent corrective phase. The 200 DEMA was defended convincingly, with the index managing to close above this level, thereby reinforcing its importance as a key near-term support. On the upside, 25585 continues to act as a critical resistance, coinciding with the earlier Bearish Belt Hold formation and reflecting persistent supply pressure and short-term trend deterioration. Any meaningful change in trend will be technically valid only if Nifty decisively breaches and sustains above 25585 on a closing basis. Structurally, the recent candlestick formation has appeared near the lower boundary of a broader Broadening Pattern, a zone that often precedes sharp directional moves, though a clear daily reversal confirmation is still awaited, keeping the broader setup neutral to cautiously optimistic. From an internal wave structure perspective, 25040 remains a potential termination zone of the corrective phase, where demand is expected to overpower supply, aligning well with options data that indicates a range shift towards 25500–25000 for the current series with a mild bullish bias and the likelihood of sharp, volatile swings that could eventually culminate in a reversal.

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