Weekly Market View: Nifty shows bearish signals; Be protective between resistance near 25,650

The Nifty continued its corrective spell for the sixth straight week, a rope of an unexpected defeat in five years, as the index is flowing lower in a relatively narrow range. Nifty Osilet was seen between 24,736 in the 398-point range and 24,337 on the lower side, showing a lack of mute volatility and directional conviction.

India Vicks has made a nominal state from 0.48% to 12.03, showing that the spirit remains calm despite prolonged weakness. By the nearest of the week, the index ended with a net loss of 202.05 points or (-0.82%).

We have a short week ahead with Friday’s trading holiday due to Independence Day. The index structure remains weak in the near term. The latest peaks close to 25,650 marks the lower top, which is consistent with the confluence of two important pattern resistance – from one previous height trendline, and the other a comprehensive consolidation channel. This zone now acts as a strong supply field.

The market still trades under this resistance cluster, with a light -down OPE -shorter appearance in the short -term average. Any meaningful side will require a critical breakout above this confluence; On the contrary, a continuous trade below 24,200, which is a 50-week moving average, can accelerate the corrective leg.

As we go in the new week, the Nifty is likely to see a soft or cautious start. The immediate resistance level is placed at 24,500 and 24,850, while support comes at 24,200 and 23,950.

Weekly RSI is 49.50. It has formed a new 14-term lower, which is bearish, but remains neutral without interruption against the price. Weekly MACD has shown a negative crossover; He is now bearish and trades below his signal line.

The pattern analysis shows that the Nifty is still honoring the sloping resistance line from the back top, with a lower-high formation near 25,650. The index rotates below the 20-week moving average (24,496), and any violation of the 50-week average at 24,203 can invite the ER-cut cut, which makes the index extra weaker from the current levels. Despite many efforts, the inability to clear the confluence resistance highlights the current supply pressure.

Given the current setup, traders should be protective in their approach. Fresh aggressive longs should be avoided until the index is broken at a stronger volumes than 25,000-25,100 zones. Short-term players can adopt a very selective, stock-specific approach with a strict stop-loss to protect the capital. For now, protecting the benefits and understanding of contact is a choice strategy as the market continues to integrate with the following bias.

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