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Nifty

Nifty extended its bullish momentum but encountered profit-booking pressure, which capped gains and kept the index below the crucial 25170 resistance. The focus now shifts to a decisive breakout above 25170, which could trigger a fresh leg of short covering toward the 25300–25500 zone. Yesterday’s close formed an ‘Inverse Hammer’-type candlestick pattern, indicating potential exhaustion at higher levels. A confirmatory close below 25040 would validate a near-term corrective phase. The broader structure remains constructive as long as Nifty sustains above 24890, a key support zone aligned with the 5-DEMA, 20-DEMA, and 50-DEMA cluster, representing a strong base for ongoing momentum. On the downside, a decisive break below 24620 would invalidate the current bullish setup. While global uncertainty and FII outflows continue to pose headwinds, domestic sentiment remains resilient, supported by strength in large-cap IT and Banking stocks. Overall, a sustained move above 25170 will confirm the breakout and reinforce the medium-term uptrend, while maintaining a buy-on-dips approach above 24890 remains the preferred strategy.

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