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Nifty

Proximity to the 200 DEMA at 25160 along with the weekly 50 WEMA near 24990 makes this zone a strong demand cluster and a likely area for termination of the ongoing corrective phase. Options data further strengthens this view, with firm put writing around the 25000 strike, while upside positioning continues to remain capped near 25500, indicating a well-defined range. The recent formation of a Spinning Top candlestick near the anticipated demand zone reflects heightened indecision after the corrective move, often seen close to inflection points. Importantly, the 200 DEMA was decisively defended last week, with Nifty managing to close above it, reinforcing its significance as a key near-term support. On the upside, 25585 remains a crucial resistance, aligning with the earlier Bearish Belt Hold formation and highlighting persistent supply pressure along with short-term trend deterioration. A meaningful trend reversal will be technically valid only on a decisive and sustained close above 25585. Structurally, the recent price action is unfolding near the lower boundary of a broader Broadening Pattern, a region 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 continues to stand out as a potential termination area for the corrective phase, where demand is expected to overpower supply. This setup aligns well with the possibility of sharp, volatile swings, which could eventually evolve into a reversal from lower levels.

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