Piercing Line Pattern Reinforces 23,800-23,900 Support Zone - Tradebulls Securities Pvt Ltd
Nifty
Ahead of the June F&O expiry, Nifty 50 continued to witness range-bound trading, oscillating within the 24140–23800 band while holding firmly above its immediate gap support zone. The recent formation of a Piercing Line candlestick reversal pattern reaffirmed the strength of the 23800–23900 demand zone, keeping the broader bullish structure intact. Although momentum indicators have moderated and continue to reflect a neutral shortterm bias, with weekly trend indicators yet to strengthen, the ongoing consolidation near higher levels suggests underlying accumulation rather than distribution. A decisive close above the immediate resistance at 24200 would confirm a fresh breakout, likely triggering renewed buying interest and short covering, with the potential to propel the index towards 24400–24500. On the downside, immediate support is placed at 23800, followed by a stronger support zone between 23750 (20-DEMA) and 23645 (major gap support). A sustained breach below this zone would weaken the prevailing bullish structure and could trigger momentum-led selling, resulting in an extended corrective phase. Overall, the technical setup remains constructive, and the preferred strategy continues to be buy on dips as long as the index sustains above the 23800–23645 support zone.
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