Nifty has started the week with yet another gap-down opening near 22930 - Tradebulls Securities Pvt Ltd
Nifty
Nifty has started the week with yet another gap-down opening near 22930. Gaps generally indicate trend continuation rather than reversal, and the current move appears to be an exhaustion gap, supported by a panic flush candle formation. With RSI now in the oversold zone and ADX at elevated levels, the possibility of a short-term relief rally cannot be ruled out. However, the broader market structure remains weak, continuing to follow a clear lower high–lower low pattern, indicating a sustained downtrend. While daily indicators are stretched and may trigger a temporary bounce from current levels, a meaningful or durable reversal would require either a strong bullish signal on the weekly chart or a decisive gap reclaim above 23850. On the macro front, elevated USD/INR levels, firm crude prices above $90 per barrel, persistent FII outflows, and ongoing geopolitical tensions continue to act as key overhangs, limiting upside potential. For now, the preferred strategy remains sell on rise. Traders should avoid aggressive long positions and focus on disciplined risk management along with appropriate hedging strategies.
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