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Nifty

It seems the index is poised at a pivotal stage with potential signs of bullish reversal, yet it still requires solid confirmation above 24540. The "Piercing Line" pattern near 23,800 is a promising base which also coincides with the channel pattern support zone. However, breaking above 24,540 on a consistent closing basis is essential for a clear trend reversal. The daily RSI's positive divergence with the two-point support hint at weakening bearish momentum, which could stabilize any downside pressures. With options data indicating a 24,300–24,500 trading range and strong support around 24,000, it's wise to monitor these levels. A shift in the monthly ceiling towards 25,000–25,200 suggests an improved sentiment, especially as India VIX cooling from 19 to 15 implies reduced selling pressure. For now, traders may adopt a cautious long-short strategy. If the index manages a weekly close above 24,460–24,560, it would likely affirm a more substantial upward trend, warranting increased long positions beyond 24,600 for a more aggressive stance.

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