IGI Logo

Nifty

Last week’s rebound from the 50-DEMA support at 25740, coupled with the formation of an Inverse Hammer candlestick, may signal an early indication of a potential trend reversal. The daily RSI has registered a positive crossover above the 50 mark, further reaffirming the gradual improvement in momentum. This recent price action, with key indicators positioned near the upper boundary of the prevailing range, raises the possibility of a longawaited range breakout. However, a sustained follow-through above 26050 remains essential to re-establish bullish trend strength. Until this resistance is decisively breached, the broader structure is likely to witness minor pullbacks within the established 25740–26050 range. Momentum indicators continue to send mixed signals. While RSI has turned positive, ADX has eased to 17, well below its 25 thresholds, indicating a lack of strong directional conviction. A convincing breakout above 26050 could significantly improve sentiment and open the pathway toward 26330. Conversely, a breakdown below 25740 would weaken the setup and may expose the index to further downside. Given the current configuration, traders are advised to remain cautious and consider adding aggressive fresh positions only if directional strength improves above the key resistance of 26050, preferably early in the week.

Please refer disclaimer at https://www.tradebulls.in/disclaimer

SEBI Registration number is INZ000171838