NIFTY BROKE DOWN SUPPORT LEVEL,BUT SOME BOUNCE BACK IS EXPECTED

NIFTY Analysis Update

Recent Price Action

- The **25330** level acted as a significant support zone, as discussed previously.
- The market opened with a gap down below 25330, confirming bearish pressure.
- The next anticipated support at **25200** was also breached, and the session closed below this level.
- With these supports broken, the **25050–25000** range is now identified as the next key support zone.

Technical Indicators

- The **Relative Strength Index (RSI)** is showing extreme oversold conditions across smaller timeframes.
- Such oversold readings typically suggest the potential for a technical bounce or reversal, as selling momentum may be exhausted.

Outlook for Monday

- Given the oversold RSI, there is a heightened probability of a **reversal or bounce** on Monday.
- A rebound towards the **25500-25700** zone is possible, which could serve as a near-term resistance or top before the next directional move.
- If the market manages to close in green, it would confirm the short-term reversal thesis.

Key Levels to Watch
25330: Previous major support (broken)
25200: Next support (broken)
25050–25000: Current support zone
25500-25700: Potential bounce/reversal target

Summary

- **Immediate trend:** Bearish pressure persists after key supports were broken.
- **Short-term outlook:** Oversold conditions suggest a potential bounce; watch for a move toward 25700.
- **Risk:** Failure to hold 25000 could trigger further downside.

Monitor price action closely around the support and resistance zones, and watch for confirmation of reversal signals on Monday.