Nifty has broken above its four-day consolidation, but a convincing follow-through is still awaited - Tradebulls Securities Pvt Ltd
Nifty
Nifty has broken above its four-day consolidation, but a convincing follow-through is still awaited. Yesterday's Inside Bar candlestick formation indicates continued consolidation, with well-defined trigger levels on either side. The daily RSI has registered a bullish crossover, while the ADX remains at an extremely low level, suggesting improving momentum and the potential for a sustained directional move. A decisive close above 24400 remains the immediate technical requirement to accelerate the rally towards the 24800 zone. Conversely, a breach below 24100 could trigger a decline towards 23600, in line with the extended trendline support. Traders should initiate fresh long positions only after a sustained breakout above 24400 and continue focusing on stock-specific opportunities. Investors may continue accumulating fundamentally strong stocks in a staggered manner, with more aggressive deployment after breakout confirmation. A decisive close below 23800 would weaken the broader market structure and warrant a defensive stance with tighter risk management.
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