Nifty 50 - Potential Reversal or Further Weakness?

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The Nifty 50 index has formed a potential inverse head and shoulders pattern on the daily timeframe, which generally indicates a bullish reversal. However, there are key levels to watch before confirming the next move.

Key Observations:
Support Levels:

The 50% Fibonacci retracement level at 22,937 is a crucial support.

The 61.8% Fibonacci retracement level at 22,717 is another key demand zone.

A break below these levels may invalidate the bullish setup and push Nifty towards 22,400 or lower.

Resistance Levels:

Immediate resistance is near 23,157 (38.2% Fib level).

A strong breakout above 23,430 (23.6% Fib) could open the door for a retest of 23,870 and beyond.

Volume & Confirmation:

Increasing volume at the lows suggests strong buyer interest.

A confirmed breakout with volume above 23,200-23,400 will strengthen the bullish case.

Trading Plan:
Bullish Scenario: If Nifty holds above 22,717, we may see an upward move towards 23,400+.

Bearish Scenario: A break below 22,700 could accelerate selling pressure, with 22,400-22,000 as the next support zones.

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