Yesterday`s Inside Bar drop shows consolidation, but index holds above key 5-DEMA support at 25450 -Tradebulls Securities Pvt Ltd
Yesterday’s decline following the formation of an Inside Bar candle confirms the ongoing consolidation phase. However, the index continues to hold firm above its key 5-day Exponential Moving Average (5-DEMA) support at 25450, which remains a critical demand zone. A sustained move below 25450 may trigger a brief corrective leg within this consolidation, while a breakout above 25730 could reinstate upward momentum. Options data indicates strong support in the 25500–25400 zone, with upside potential extending toward 26,000 if the index clears 25700. The broader trend remains bullish as long as Nifty holds above 25030 on a weekly closing basis. In the near term, minor resistance is seen in the 25730 range, with a move toward 26000 likely in the early part of the July series. A notable rise in the daily ADX above 25 signals strengthening momentum, further supported by bullish crossover signals in short-term moving averages and positive momentum indicator readings. Traders should continue to focus on stock-specific long opportunities, provided the index remains above 25030 on a weekly basis. The review zone stands at 26555, while investors may consider accumulating on dips, targeting the bullish flag breakout projection of 27255 over the longer term. For the day expect major strength above 25230 while breakdown below 25400 may aggravate the decline towards 25300 itself.
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