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Nifty

The index displayed signs of further weakness after closing below its 50 DEMA support level of 25,054, extending its five-session selloff. The index is now approaching its critical trend support zone placed near its 5-month EMA of 24,760, with the daily RSI approaching the oversold level, and the ADX turning neutral at 38. On the 60-minute chart, a Price-RSI divergence suggests that a short-term bottom could be forming soon. Options data further supports this view, highlighting the 25,000-24,500 range as key zone for establishing declining wave to terminate, with potential area for a final decline towards 24,500, aligning with the 20 WEMA support. Early signals of a potential reversal price pattern suggest the short-term downtrend could be in its final phase. However, confirmation from additional data is crucial to assess the strength of any rebound. Momentum traders may look to adopt a mixed approach with both long and short positions while the index remains under 25,080. For investors, the current demand zone between 24,760-24,500 could offer an opportunity to accumulate long positions in a staggered manner

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