Nifty Pauses as Uptrend Consolidates - Tradebulls Securities Pvt Ltd
Nifty
Yesterday's price action reflected a pause in the ongoing uptrend, with the index remaining confined within the previous trading session's range and forming a narrow-bodied candlestick. This Inside Bar-like formation suggests indecision at elevated levels, particularly as the index approached the crucial resistance zone of 25475 and witnessed profit booking near the higher levels. While the broader trend remains firmly positive, emerging signs of near-term exhaustion warrant a more cautious approach. The 5 DEMA has advanced to 25000, which now assumes significance as the immediate trend-defining support. Momentum indicators remain stretched, with daily RSI near 80 and ADX at 48, suggesting that although the trend strength remains robust, the risk of intermittent profit booking has increased. A sustained hold above 25000 could help the index absorb selling pressure and resume its upward trajectory towards 25475, followed by higher levels. Conversely, a decisive breakdown below 25000 could accelerate profit booking towards 24870, with 24800 emerging as the next important reference point.Traders should avoid chasing prices at elevated levels and maintain disciplined trailing stop-losses. Fresh directional positions should preferably be considered near the 25000 support zone or following a decisive breakout above 25475.
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