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Nifty

After a sharp four-session decline, the index may see some pause or consolidation ahead of expiry. In the previous session, Nifty slipped below the 23500-support cluster but formed a Spinning Top candlestick on the daily chart, reflecting indecision around this key level. However, underlying momentum indicators continue to remain on the weaker side. The RSI is subdued near 46, while the ADX has started to rise from lower levels and is approaching the 25 mark—any sustained move above this could indicate strengthening of the prevailing trend, which currently leans bearish. A decisive break down below 23500, followed by a breach of the 23250-pattern support, may open the door for further downside towards the 23150–23000 gap support zone, which remains a crucial near-term support area. In the absence of strong intraday reversal signals, the broader bias is likely to remain cautious to negative. Traders may consider maintaining a stock-specific approach and avoid aggressive long positions unless a clear daily reversal is observed or the index moves back above 24140 (50 DEMA). Until such confirmation emerges, a cautious short bias on meaningful pullbacks may be considered, with an eye on lower support zones.

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