Nifty hit resistance near 26050, closing just below prior day’s close - Tradebulls Securities Pvt Ltd
Nifty
Nifty encountered resistance near the anticipated 26050 zone, slipping to close marginally below the previous day’s finish. However, the index has impressively maintained its closing sequence above the 5 DEMA for the 7th consecutive session, reflecting underlying strength despite intraday volatility. A decisive move above 26050 on an immediate basis is expected to accelerate the uptrend toward 26330, supported by the possibility of a short squeeze in the coming weeks. The appearance of a ‘Rising Three’ bullish continuation pattern on the weekly chart—following the breakout above 25700—reinforces the prevailing positive momentum. On the downside, 25725 acts as the first line of support, while the pattern support at 25440 remains crucial for sustaining the broader bullish structure. Options data indicates 25800 as a firm near-term base, with weekly resistance likely shifting toward 26500 once the index stabilizes above 26000. The market setup suggests increasing bullish traction in the sessions ahead. Traders may consider initiating aggressive fresh long positions above 26050, with an initial target of 26330. Protective stops should be placed below 25440 for now and trailed higher as the trend progresses to ensure optimal risk management.
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