Nifty Correction Or Trend Shift? SEBI RAs Maintain Uptrend View With Key Supports In Place

Indian equity markets ended Thursday’s session lower, dragged by global jitters.

Amid cautious sentiment, traders weigh the recent expiry and potential for a directional shift. However, analysts firmly believe that the broader trend for Nifty remains bullish, with key support levels still intact.

Analyst Bharat Sharma from Stockace Financial Services reiterated the positive outlook despite concerns of positional bearishness above the 25,000 mark. 

According to Stockace Financial, the recent dip in Nifty was a typical case of profit booking rather than a trend reversal signal. 

Their confidence stemmed from robust technical signals on the daily chart, most notably the index’s bounce from the 20-day exponential moving average (DEMA) near 24,500, a level that also aligned with significant historical price support.

Stockace Financial pointed out that the current alignment of all major DEMAs (20 > 50 > 100 > 200) continued to suggest a healthy uptrend. 

They argued that as long as the index stayed above 24,500, there was no reason to panic. Even if breached, the next strong support zone appeared near 24,000, at the 50 DEMA.

They added that the recent triangle pattern on Nifty had accurately predicted the bounce from 24,500, resulting in a substantial pullback. 

Stockace Financial believed that holding above this support could eventually lead the index to retest 24,800 and even reclaim the 25,000 mark, potentially setting the stage for a new all-time high over the next two to three months. 

Conversely, a breakdown below 24,500 could open the gates to a deeper correction toward 24,200–24,000.

They highlighted immediate intraday support at 24,550 in the near term, with downside risk extending to 24,300 if that level was breached. 

On the upside, resistance was seen at 24,650–24,660 on shorter timeframes, with potential for a rally toward 24,800 if surpassed.

Given that the market has just moved past a significant expiry, they expect follow-up probabilities to be limited. The market is likely to either attempt a recovery or remain muted.

Echoing a similarly methodical view, Ashish Kyal offered insights. 

Kyal had earlier predicted that a fall below 24,650 would drag the index to 26,540 and then 24,470 — a scenario that unfolded precisely. 

Now, he sees a move above 24,690 followed by a breach of 24,750 necessary to shift market bias back to bullish, paving the way for a rally to 25,130. 

However, he cautioned that a fall below 24,450 would signal fresh weakness.

While short-term volatility and expiry-related movements had kept markets on edge, both analysts emphasized that the larger structure remained intact. 

As traders awaited follow-through action after the weekly options expiry, the consensus among analysts was clear: the pullbacks were temporary, and the trend was still upward.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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