Weakness Persists as Nifty Slips Below 5 DEMA Near 23,680 - Tradebulls Securities Pvt Ltd
The recent pullback towards the 23800 zone lacked conviction, as prices failed to sustain and slipped below the 5 DEMA at 23680, highlighting persistent underlying weakness. Price action still remains confined within the “Falling Three” continuation pattern threshold which reinforces the likelihood of further downside. A breakdown below the 23500 support cluster could trigger fresh selling pressure, dragging the index towards the 23300 mark.. Momentum indicators remain subdued, with RSI hovering around 45, indicating lack of strength, while ADX is gradually rising from lower levels and nearing the 25 threshold. A sustained move above this level would confirm strengthening of the prevailing trend, which currently remains bearish. A decisive breakdown below 23500, followed by a breach of the 23250 pattern support, could accelerate selling pressure and push the index towards the 23150 - 23000 gap support zone, which is expected to act as a critical near-term base. In the absence of strong intraday reversal signals, the broader bias remains cautious to negative. Traders are advised to maintain a stock-specific approach and avoid aggressive long positions unless a clear daily reversal is observed or the index reclaims the 24080 level (50 DEMA). Until such confirmation emerges, a cautious sell-on-rise strategy remains preferable, with focus on lower support levels
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