Technical Analysis

WHAT LIES AHEAD : NEAR-TERM PICTURE 

SPOT NIFTY : On a highly volatile day with a 562-point swing, the Nifty decisively broke out of an inverted headand-shoulders pattern, supported by higher volumes over the past five days. Ahead of the RBI monetary policy announcement, market participants are optimistic, anticipating increased liquidity and favourable commentary. The Nifty has recovered 50 per cent of its previous decline, rising 6.85 per cent from its recent low, and now stands firmly above its 50-day moving average (50DMA). This marks the completion of a Category-1 correction and a clear trend reversal. A dip below the recent low of 23,263 could signal the start of a Category-2 correction, exceeding 20 per cent from its all-time high, but until then, the outlook remains optimistic.