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Nifty

The Nifty50 index commenced the September series with encouraging signs of a potential reversal after enduring a sharp six-day decline. The index staged a firm rebound towards its 5-DEMA level of 24630, offering early evidence of stabilisation. On the daily chart, an Inverse Hammer candlestick pattern has formed exactly at the 88.6% retracement support of the prior impulse wave from 24344 to 25154 – a zone that historically carries high reversal probability. Reinforcing this setup, the 60-minute chart highlights a positive price–RSI divergence, signalling that downside momentum is waning despite recent weakness. From a price-action perspective, yesterday’s sustained close above 24500 has already triggered bouts of short-covering, while a follow-through close above 24740 would act as stronger confirmation for a near-term rebound and potentially open up higher targets. On the flip side, traders should closely track 24340 as a critical make-or-break level; any failure to hold here early in the week could negate the reversal thesis and extend the corrective phase. Overall, technical cues remain cautiously optimistic, with the zone of 24500–24760 emerging as a decisive gateway for bullish momentum to reassert.

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