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Nifty displayed a smart rebound from the key support zone of 25000, closing above the crucial 25030 level while forming a bullish hammer candlestick pattern—typically a strong reversal signal. Despite this recovery, the index remains well below its 5- and 20-day exponential moving averages, suggesting a short-term mean reversion bounce is possible. However, the broader trend remains corrective unless Nifty decisively breaks above 25500, with 25300 acting as interim resistance. A breakdown below 24930 could trigger further selling pressure, while a breakout above 25550 would confirm a return of bullish momentum. Technical indicators are showing caution: the ADX is flattening, indicating a loss in trend strength, and the RSI remains below 50, pointing to weak momentum. Options data highlights firm support at 25000 and resistance in the 25300–25500 zone. Until a clear breakout or breakdown occurs, the index is expected to trade sideways within the 25000–25500 range. The strategy should remain stock-specific with a buy-on-dips approach, while aggressive longs are best reserved for a breakout above 25550 or a confirmed bounce from the 25000 level. A weekly close above 25030 remains critical to sustain the broader bullish structure.

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