TECHNICAL OUTLOOK

The Nifty index witnessed a volatile yet structurally supportive phase in April, marked by a sharp corrective move from the lower boundary of its rising channel while continuing to respect the broader upward trajectory.

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What began with an indecision candle saw the index form a base, after which it witnessed a strong upward rally. The presence of multiple recovery candles and long lower shadows shows accumulation at lower levels, suggesting that market participants are selectively engaging in value buying. However, the second half of the period witnessed stabilization, as the index attempted to find resistance near the 100% Fibonacci level, with recent pullbacks and recovery candles indicating strong indecision.

Momentum indicators reflected a moderate phase, with RSI turning to a positive crossover near the oversold territory before gradually recovering. The recent uptick in RSI, along with signs of recovery near the mean level, points to a shift in momentum, indicating early signs of bullish undertones emerging from lower levels.