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Nifty

Nifty's technical landscape remains challenging, with the index revisiting its immediate resistance around the 5 DEMA level of 23,040 and showing resilience by rebounding to close on a bullish note. However, despite this attempt, the index failed to register a close above this critical level. The declining 5 DEMA has persistently acted as a supply zone for the past seven sessions, reflecting ongoing selling pressure at higher levels. A bearish configuration of short-term moving averages has gradually shifted the resistance lower, from 23,410 to 23,210 for the week. The daily RSI dipping below 40, combined with the ADX trending higher at 28, signals caution for long positions, suggesting that momentum remains weak while trend strength is building. For the remainder of the week, Nifty faces immediate resistance at 23,040-23,210, which must be decisively breached to resume a meaningful pullback or relief rally. Until then, range-bound movement with a negative bias is expected, with the likelihood of a breach towards the 22,510 zone for the rest of the series. A stronger trend confirmation is essential before shifting the outlook to bullish. A sell-on-rise strategy remains favourable, supported by options data that indicates firm resistance at 23,300 (lowered from the earlier 23,500) and key support levels at 22,800 and 22,500. Long positions should only be considered if Nifty sustains above 23,560, ensuring a clearer directional trend. Amidst this technical backdrop, investors are advised to closely monitor earnings outcomes and identify opportunities in oversold stocks, keeping a vigilant approach to risk management as market volatility persists.

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