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Nifty

Nifty maintained its gap-up gains throughout the session, confidently trending above its 200 DEMA level of 23,400. It reached the anticipated 23,400 target ahead of schedule, which is now expected to act as a strong support level for sustaining momentum. A dip below 23,390 could weaken the ongoing trend, while a close above 23,800 may set the stage for an extension toward 24,000 within the week. Momentum indicators continue to signal strength, with the RSI entering the overbought zone at 72 and ADX at 33 reflecting strong directional momentum. The bullish crossover of the 5 & 20 DEMA at 22,610 reinforces this level as an ideal trailing stop-loss for directional long positions. While some profit booking due to sectoral rotation is likely, the broader uptrend remains intact. Traders should hold momentum long positions as long as 23,390 holds on a closing basis. However, intraday dip-buying may not be the most effective strategy at this stage. Reducing long exposure only if 23,390 is breached would be a prudent risk management approach, as the rally enters its sixth consecutive session, covering the zone from 22,350 to 24,000.

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