Nifty showing signs of potential bullish reversal, say market experts

The NSE Nifty 50 index ended higher for the third straight day on Thursday, and was seen defending the 200-DMA, say technical analysts.

The NSE Nifty 50 index ended higher (up 0.3 per cent) for the third straight trading session on Thursday at 25,419 levels. The index gained 1.5 per cent or 370 points in the last three sessions, and it marked Nifty's longest winning streak (3-day) since January 2, 2026.  Technically, the Nifty has been hovering around the key long-term - 200-day moving average (200-DMA) on the charts since the last two weeks.  In general, the 200-DMA is considered as a key technical indicator in determining the long-term trend for the particular index or stock. With prices above the 200-DMA considered as bullish (positive) trend and bearish (negative) in case of vice versa.  Technical analysts have highlighted the significance of the 200-DMA, which now stands at 25,184, amid the recent Nifty trading action. 

 

 

  Osho Krishan, chief manager - technical and derivative research at Angel One explains that the 200-DMA has demonstrated strong significance by withstanding intra-day fluctuations; the 25,200 - 25,150 zone, which coincides with the 200-DMA should be seen as the sacrosanct support for the Nifty.  That apart, the analyst highlights formation of an 'Inverted Head and Shoulders' pattern on the Nifty hourly chart.  ALSO READ | Will Sensex hit 100,000 in 2026? Here's what market experts, charts suggest  "An 'Inverted Head and Shoulders' pattern is emerging on the hourly chart for the Nifty 50 index, indicating a potential bullish reversal in the upcoming sessions. On the levels front, the zone of 25,300 - 25,250 is likely to cushion any short-term blips," says Krishan.  On the flip side, the analyst expects intermediate resistance for the index around 25,500 - 25,580 levels.  Echoing a similar view, Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities believes that the Nifty is showing signs of potential bullish reversal.  "Nifty is exhibiting early signs of bullish acceleration, firmly sustaining above the 200-DMA and establishing a crucial base in the 24,900 – 25,000 zone. Importantly, despite the broader corrective phase, the index has managed to close above its previous session's high for the third consecutive trading day, reflecting a revival in buying interest," explains Dhameja.  On the upside, the analyst says that a decisive breakout above the immediate resistance at 25,500 may accelerate short covering and attract fresh buying interest.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.