The chart reflects a recent bullish breakout after a period of consolidation in the lower Bollinger Band range.
Nifty 50 has reclaimed strength and closed above the 20-period SMA (middle Bollinger Band), suggesting renewed upward momentum.
Bollinger Band Signals:
The earlier downward movement touched the lower Bollinger Band, indicating oversold conditions.
The recent sharp bullish move suggests a potential reversal, with the price attempting to shift back into the upper band region, a sign of bullish continuation.
Key Resistance and Support:
Immediate resistance lies near the upper Bollinger Band level (around 25,946).
Support is expected near the 20-period SMA (24,720) and the recent low (23,494).
Market Sentiment:
A close above the middle Bollinger Band shifts the sentiment from neutral/bearish to bullish.
If the bullish momentum sustains, the index could target the upper band region. However, a pullback to the SMA might provide a better risk-reward opportunity for long entries.
Conclusion:
Nifty 50 is showing signs of recovery with bullish momentum. Traders should watch for a sustained breakout above the upper band or a pullback to support zones for further confirmation.
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