Nifty Breaches 23,800 Support, Weakens Bullish Reversal Setup - Tradebulls Securities Pvt Ltd
Nifty
Nifty filled the gap-support zone near 23800 last week and formed a Bullish Hammer reversal pattern. However, the index continued to drift lower and failed to sustain above 23800, thereby breaching the Hammer’s pattern-support low and weakening the reversal setup. Nifty has also been trending below its 5-DEMA, which now acts as immediate intraday resistance, followed by 24000, whose sustained reclaim would be essential to revive hopes of a meaningful rebound. A close above the Hammer’s high remains crucial to confirm the reversal and restore confidence in a sustainable recovery. The Nifty Put-Call Ratio (PCR) stands at 0.69, indicating an oversold market condition, which could provide some scope for a technical rebound if key resistance levels are reclaimed. The index remains confined to a broader 24150–23740 range and continues to exhibit near-term weakness after slipping below its 50-DEMA at 24180. For the week, 24150 remains the major resistance; a decisive move above this level would strengthen the reversal setup, while a subsequent breakout above 24420 would confirm a broader bullish revival and restore directional momentum. On the downside, support has shifted lower towards the 23740–23550 zone, with 23740 being the immediate crucial level. A decisive break below 23740 could intensify unwinding pressure towards 23550 or lower. Until Nifty decisively reclaims 24150, traders should continue to favour stock-specific opportunities with disciplined risk management
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