Nifty Holds 20-DEMA Support Despite Intraday Dip - Tradebulls Securities Pvt Ltd
Nifty
Last week, Nifty slipped below its 20 DEMA support near 24360 intraday but managed to recover and close above it for three consecutive sessions. Successive narrow-range candles indicate contracting volatility, while recent 'Bullish Hammer' formation offers an early signal of potential reversal, subject to confirmation. A sustained move above 24620 could trigger fresh momentum towards 24800–25100. However, the index has slipped below its 5 DEMA at 24520, making an early recovery above this level crucial; failure to do so could extend the gradual decline towards the 50 DEMA support at 24180–24000, where the weekly 0–2 trendline also rests. Momentum indicators remain subdued, with both daily and weekly RSI holding above 50, while ADX is rebounding from its extreme zone. A decisive breach below 24400 would increase downside risk towards 24100–24000, with 24000 remaining the key risk-management level. Traders should focus on stock-specific opportunities and selectively accumulate on dips while 24000 holds. Fresh longs may be considered only after a sustained breakout above 24620, targeting 25100. Until confirmation emerges, patience and disciplined risk management remain advisable.
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