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Nifty

On the daily chart, the index is exhibiting conflicting signals at the current juncture. The negative crossover between the 5 and 20 DEMA indicates a critical resistance at 25,505, which will serve as a pivotal level to confirm the resumption of an uptrend. The recent formation of an Inverse Hammer candlestick pattern also requires a confirmatory close above this level to validate its bullish implications and establish a potential bottom. However, the intensity of selling pressure over the last four sessions has led to a close below the 25,080 mark, accompanied by the RSI slipping below 50 and the ADX turning neutral. This is a negative sign for immediate support and suggests the possibility of a further decline towards the key support zone of 24,800–24,760. Given the mixed signals — a negative crossover on the 5 and 20 DEMA coupled with a potential reversal pattern — the trend appears indecisive. This indicates that the index may stabilize around the current support levels, but it would be prudent to wait for additional data and confirmatory signals to gauge the directional strength. For momentum traders, a combination of long and short positions may be appropriate. Meanwhile, investors could consider accumulating staggered long positions, as the index is hovering around its crucial 50 DEMA support at 24,800–25,080

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