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Nifty

Yesterday’s gap-up opening witnessed follow-through buying as the index managed to close above the broadening pattern support zone near 24500, signalling improving near-term sentiment. The price structure has resulted in the formation of a potential ‘Morning Star’ candlestick reversal pattern, which would require a confirmatory close above the 24850 zone to strengthen the bullish outlook. After slipping into the initial oversold territory on the daily RSI, the index attempted a rebound that may help it gradually move higher towards the unfilled gap window around 25040–25140, though the upside momentum may remain somewhat capped in the near term. On the 30-minute chart, the emergence of a price–RSI bullish divergence provided the early signal of a possible near-term recovery. In addition, the earlier formation of a ‘Spinning Top’ candlestick following a sharp rally indicates that bullish momentum may be stabilizing after the recent volatility. A sustained move above 24500 could open the door for a pullback towards the 25040– 25140 zone. Meanwhile, options data continues to suggest a broader 24000–25000 trading band, with 24500 acting as the crucial pivot. Until a clearer trend emerges, a range-trading approach remains advisable.

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