Nifty Holds Key Support at 23,800; Strong Cushion Seen in 23,750–23,645 Zone - Tradebulls Securities Pvt Ltd
Nifty
Nifty 50 staged a strong recovery last week from its immediate gap support zone near 23,800, forming a Piercing Line candlestick reversal pattern, reaffirming the strength of the demand zone between 23800–23900 and keeping the broader bullish trend intact. Following its recent breakout from a declining channel, the index continued to consolidate within the 23800–24200 range, indicating a healthy pause rather than a reversal. Although momentum indicators have moderated and currently suggest a neutral short-term bias, with weekly readings yet to strengthen, the ongoing consolidation at higher levels reflects underlying accumulation. A decisive closing above the immediate resistance of 24200 would confirm a fresh breakout, likely to attract renewed buying interest and paving the way for an upside move towards 24400–24500. On the downside, immediate support is placed at 23800, followed by a stronger support zone between 23750 (20-DEMA) and 23645 (major gap support). A sustained breach below this zone could weaken the prevailing bullish structure and trigger a phase of extended consolidation. Overall, the technical setup remains constructive, and the preferred strategy continues to be buy on dips, as long as the index sustains above the key support zone.
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