Nifty 50: Breakdown in Channel with Key Support Levels Ahead

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Hello guy's i hope you all will be doing good in your life and your trading as well. Today i have brough an analysis on Nifty 50 Index as it is showing signs of weakness after a confirmed breakdown in the descending channel. This breakdown has significant implications for the short-term trend, indicating that bearish momentum could dominate unless strong support levels hold. Let’s break this down further:

Breakdown in the Channel:

The price has decisively broken below the lower boundary of the descending channel, indicating bearish sentiment.
This suggests that sellers are in control, and any recovery attempts might face strong resistance at higher levels.

Resistance Zone at 24,056.25:

The zone near 24,056.25 acts as a key resistance. This level marks the upper limit where selling pressure could resume if there’s a pullback.
Traders should watch this level closely, as a failure to break above it will reinforce the bearish outlook.

Next Immediate Support at 23,257.90:

The level 23,257.90 represents the next critical support. Buyers may attempt to defend this zone to prevent further downside.
A breach of this support could lead to an accelerated sell-off.

Lower Support at 22,158.75:

If the selling pressure continues, the price could head toward the 22,158.75 level, which is a significant area of interest.
This zone aligns with the lower projections and could act as a strong base for a potential reversal.

Volume Observation:

The volume spike during the breakdown adds weight to the bearish case. Sustained high volume on declines would confirm the continuation of the downtrend.

Bearish Projection:

Based on the price structure, a breakdown typically leads to a retest of prior support levels. In this case, the index could test levels closer to 22,158.75 if the bearish momentum persists.
The descending pattern further supports the possibility of a continuation in the downtrend.
Outcome: Traders should remain cautious as the short-term bias remains bearish. Monitoring the 23,257.90 support is crucial, as a breakdown below this level could open the door for further downside. On the flip side, any recovery attempts would need to overcome the 24,056.25 resistance zone to change the narrative.

Key Takeaways:

Watch 23,257.90 for support and 24,056.25 for resistance.
Below 23,257.90, the next target is likely 22,158.75.
A sustained move back into the channel would invalidate the bearish setup.


Disclaimer: This post is for educational purposes and not financial advice. Always do your research and manage your risk.

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