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Nifty

The Nifty is at a crucial juncture, testing key support and resistance levels amidst a mixed sentiment backdrop. The 200 DEMA at 23,500, aligning with channel pattern support, remains critical; a breach could lead to a further decline toward 23,200, coinciding with the 50- week EMA. On the upside, the 23,800–23,900 range presents immediate resistance, with a broader hurdle at 24,000. A positive RSI divergence signals weakening bearish momentum, though a clear reversal is yet to be confirmed. Options data suggests a range-bound outlook between 23,300 and 23,700, while cooling India VIX, from 19 to 13, hints at reduced selling pressure and potential stabilization. In the short term, consolidation between 23,300 and 24,000 is expected. Traders can leverage long-short strategies, activating leverage longs only above 24,140. Meanwhile, investors can use this correction to accumulate oversold mega-cap stocks with relative strength, positioning for a recovery as market conditions stabilize.

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