The Nifty50 index enters the new week with encouraging signals of a potential reversal after a steep six-day decline - Tradebulls Securities Pvt Ltd
Nifty
The Nifty50 index enters the new week with encouraging signals of a potential reversal after a steep six-day decline. On the daily chart, an Inverse Hammer candlestick has emerged precisely at the 88.6% retracement support of the prior impulse wave from 24344 to 25154 — a zone often associated with high-probability reversal setups. Reinforcing this, the 60-minute chart highlights a positive price-RSI divergence, suggesting underlying momentum loss in the recent downtrend. From a price perspective, sustaining above 24500 could quickly trigger short-covering, while a close above 24760 would lend stronger confirmation for a near-term rebound. Until then, traders should closely monitor 24340 as a critical make-orbreak support; failure to hold early in the week could invalidate the reversal thesis and extend weakness. Overall, technical cues indicate a cautious but improving setup, with 24500–24760 acting as the near-term gateway for bullish momentum to re-emerge.
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