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Nifty

The appearance of a ‘Bullish Harami’ reversal candlestick pattern around the key support zone of 24,760 indicates early signs of strength. The positive divergence seen between PRICE & RSI on the 60-minute chart has played out as expected, resulting in a strong, confident bounce that has pushed the index back above the 25,000 mark. A decisive close above the 50 DEMA level of 25,050 would signal a resumption of the broader bullish trend, setting up a potential rally towards 25,400 in the near term. Trend indicators remain neutral, with RSI rebounding at 42 and ADX holding at 39, indicating a balanced setup. Options data suggests a likely short-covering rally if the index sustains above 25,000, while the support base is shifting higher from 24,500 towards 25,800. Early signs of a potential trend reversal suggest that the recent downtrend could be nearing its end, though confirmation from other indicators is needed to solidify this view. Momentum traders could consider a balanced strategy with both long and short positions until the index decisively breaks above 25,080. For investors, the demand zone extending to 24,500 offers an opportunity to accumulate long positions gradually, in anticipation of a sustained recovery.

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