Nifty Forms Spinning Top Near Demand Zone - Tradebulls Securities Pvt Ltd
NIFTY
The convergence of the 200 DEMA at 25160 and the weekly 50 WEMA near 24990 has created a strong demand zone, making it a likely area for termination of the ongoing corrective phase. Nifty sustaining above this region reinforces its importance as a key near-term support. The appearance of a Spinning Top followed by a Bullish Harami indicates early signs of a potential rebound. Options data supports this view, with firm put writing around the 25000 strike, while upside remains capped near 25500, defining a clear trading range. On the upside, 25585 continues to act as a crucial resistance, coinciding with the earlier Bearish Belt Hold pattern and reflecting persistent supply pressure. A decisive and sustained close above 25585 is required for a meaningful trend reversal. Structurally, price action near the lower boundary of a Broadening Pattern suggests the potential for sharp swings, keeping the broader setup neutral to cautiously optimistic.
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