**Market Overview**
The Nifty 50 index has experienced a significant downtrend since late 2024, with persistent selling pressure driving prices lower. However, recent price action suggests that buyers are attempting to stage a recovery. The question remains: **Is this a real reversal or just a temporary bounce?
In this analysis, we’ll break down the technical structure, key levels, indicator readings, and potential trade setups to help traders make informed decisions.
1. Market Structure & Trend Analysis
**Trend Direction:**
- The index recently found support at **22,307 – 22,738**, leading to a bounce.
- Multiple "Buy" signals indicate a possible reversal, but confirmation is needed.
**Key Support & Resistance Levels:
- **Resistance:**
- 23,043 (**38.2% Fibonacci Retracement**)
- 23,612 (**50% Fibonacci Retracement**)
- 24,108 (**61.8% Fibonacci Retracement**)
- **Support:**
- 22,738 (**Immediate support**)
- 22,307 (**Critical level**)
- 22,008 (**Major long-term support**)
**Price Pattern:**
- Nifty is trading within a **descending channel**.
- A **breakout above 23,043** could confirm a bullish reversal.
- A breakdown **below 22,307** could accelerate selling momentum.
2. Indicator Analysis**
Trend Meter (Momentum Indicator)**
- Mixed **green and red bars** suggest **market indecision**.
- More green bars are needed to confirm a trend shift.
Moving Averages & EMA Trend
- Price is still **below key EMAs**, meaning the overall trend is bearish.
- A breakout **above 23,043** is necessary for trend confirmation.
3. Trade Scenarios & Strategy
#*Bullish Scenario: If Price Holds Above 22,738**
- If Nifty **breaks & closes above 23,043**, expect an upside move toward **23,612 – 24,108**.
#* Bearish Scenario: If Price Breaks Below 22,307**
- If Nifty **fails to hold 22,738**, it could test **22,307**.
- If **22,307 breaks**, expect a further decline toward **22,008**.
**Conclusion**
🔹 **Nifty is at a crucial decision point.**
🔹 **Buyers must push above 23,043 for a confirmed reversal.**
🔹 **Sellers regain control if 22,738 breaks.**
The Nifty 50 index has experienced a significant downtrend since late 2024, with persistent selling pressure driving prices lower. However, recent price action suggests that buyers are attempting to stage a recovery. The question remains: **Is this a real reversal or just a temporary bounce?
In this analysis, we’ll break down the technical structure, key levels, indicator readings, and potential trade setups to help traders make informed decisions.
1. Market Structure & Trend Analysis
**Trend Direction:**
- The index recently found support at **22,307 – 22,738**, leading to a bounce.
- Multiple "Buy" signals indicate a possible reversal, but confirmation is needed.
**Key Support & Resistance Levels:
- **Resistance:**
- 23,043 (**38.2% Fibonacci Retracement**)
- 23,612 (**50% Fibonacci Retracement**)
- 24,108 (**61.8% Fibonacci Retracement**)
- **Support:**
- 22,738 (**Immediate support**)
- 22,307 (**Critical level**)
- 22,008 (**Major long-term support**)
**Price Pattern:**
- Nifty is trading within a **descending channel**.
- A **breakout above 23,043** could confirm a bullish reversal.
- A breakdown **below 22,307** could accelerate selling momentum.
2. Indicator Analysis**
Trend Meter (Momentum Indicator)**
- Mixed **green and red bars** suggest **market indecision**.
- More green bars are needed to confirm a trend shift.
Moving Averages & EMA Trend
- Price is still **below key EMAs**, meaning the overall trend is bearish.
- A breakout **above 23,043** is necessary for trend confirmation.
3. Trade Scenarios & Strategy
#*Bullish Scenario: If Price Holds Above 22,738**
- If Nifty **breaks & closes above 23,043**, expect an upside move toward **23,612 – 24,108**.
#* Bearish Scenario: If Price Breaks Below 22,307**
- If Nifty **fails to hold 22,738**, it could test **22,307**.
- If **22,307 breaks**, expect a further decline toward **22,008**.
**Conclusion**
🔹 **Nifty is at a crucial decision point.**
🔹 **Buyers must push above 23,043 for a confirmed reversal.**
🔹 **Sellers regain control if 22,738 breaks.**
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.