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The NIFTY index closed at 22,552.50, recording a 1.93% increase compared to the previous week's close. However, the weekly chart displays sideways-to-reversal signals, as the index manages to hold above support levels, suggesting a potential trend reversal.

This week, a small-bodied bullish candle with a slight lower wick has formed, reinforcing buying interest at lower levels and indicating a potential continuation of the uptrend if the index surpasses immediate resistance levels. While this suggests a pause in the bearish trend, a sustained breakout and close above the 22,800 mark could confirm a reversal, likely attracting fresh buying interest and paving the way for further upside momentum.

On the weekly timeframe, Nifty is trading below its short-term (20-day) and medium-term (50-day) Exponential Moving Averages (EMAs). However, the recent reversal from lower levels suggests that the index is attempting to reclaim these key moving averages. A successful breakout above these levels would further confirm a bullish outlook. The Relative Strength Index (RSI) stands at 39.58, indicating a rebound from lower levels. 

In terms of levels, Nifty has immediate support at 22,400 and 22,300, which could provide strong buying opportunities for traders at lower levels. Resistance is expected at 22,600 and 22,800, with the latter being a key hurdle. A sustained breakout above 23,000 could trigger a bullish trend, targeting 23,500 and 23,800 in the coming weeks. 

The India VIX, a key indicator of market volatility, declined by 1.86% to close at 13.4700 on the daily time frame, reflecting reduced uncertainty. In the derivatives segment, open interest data shows significant call writing at the 22,600 and 22,800 strikes, indicating resistance at these levels. Conversely, the highest put open interest was seen at the 22,300 strike, highlighting strong support at this level.

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