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Nifty

Nifty showed a measured reaction to the US tariff implications, rebounding close to the 25,000 mark on the final day of the July series. The index now stands at a critical juncture as a Bullish Engulfing pattern has appeared near the key support zone of 24610–24560, offering hope for a potential reversal. However, this bullish signal will only gain validity if the index manages a close above 24930. The 50-day exponential moving average (EMA) at 24940 forms an additional resistance, and a breakout above this level could spark short covering. Despite the emerging positive setup, Nifty continues to trade within a declining channel, reflecting vulnerability to further swings. Technical indicators remain weak, with ADX above 36 pointing to strong downward momentum and RSI below 42 signaling a bearish undertone. On the other hand, oversold conditions on OI PCR readings suggest room for a short-term rebound. India VIX staying below 12 keeps volatility subdued, though a rise in VIX along with improving OI PCR would hint at bargain hunting early in the August series. Options data highlights resistance at 25,000 and support at 24700– 24600. A close below 24,560 may extend losses toward 24000, while a breakout above 25250 would confirm a reversal.

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