Nifty 50 Index Chart Technical Analysis

### Technical Analysis of Nifty 50 Index Chart

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### **1. Chart Overview**
- **Chart Type**: Heikin Ashi chart on a **15-minute timeframe** for the Nifty 50 Index.
- **Indicators Used**:
- Volume
- MACD (Moving Average Convergence Divergence)
- RSI (Relative Strength Index)
- **Key Observations**:
- Two major price bottoms (labeled as **Bottom 1** and **Bottom 2**) with bullish divergence signals.
- Resistance zones and potential breakout levels are marked.
- A potential **bullish reversal** after a sustained downtrend.

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### **2. Key Chart Features and Pattern Observations**
- **Downtrend and Bottom Formation**:
- The chart shows a significant downtrend, leading to **Bottom 1** followed by consolidation and the formation of **Bottom 2**.
- A **falling wedge pattern** appears to develop between **Bottom 1** and **Bottom 2**, a bullish reversal pattern.

- **Bullish Divergences**:
- Both the **MACD** and **RSI** show **bullish divergence** at **Bottom 2**, indicating weakening selling pressure and potential for an upward reversal.

- **Heikin Ashi Trends**:
- Following **Bottom 2**, green Heikin Ashi candles emerge with longer bodies, signifying the beginning of bullish momentum.

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### **3. Indicator Analysis**
- **MACD**:
- Shows a **bullish divergence**: while price forms lower lows, the MACD histogram and signal lines form higher lows.
- The MACD line is crossing above the signal line, which is a **buy signal**.

- **RSI**:
- RSI dips into oversold levels (around **31.70**) at **Bottom 2**, confirming selling exhaustion.
- The RSI also shows **bullish divergence**, signaling a potential price recovery.

- **Volume**:
- Volume spikes around **Bottom 1**, indicating strong activity.
- After **Bottom 2**, volume shows gradual improvement alongside the green candles, confirming bullish participation.

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### **4. Key Levels**
- **Support Levels**:
- **24,295.55**: The lowest point in the chart, acting as strong support.
- **24,593.25**: Intermediate support formed during consolidation.

- **Resistance Levels**:
- **24,620.50**: Immediate resistance level; a breakout here would signal bullish continuation.
- **24,857.75**: Major resistance level and potential upside target.

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### **5. Overall Summary**
- The chart reflects a potential **bullish reversal** after forming a double-bottom pattern (**Bottom 1** and **Bottom 2**) with divergence signals.
- Indicators such as MACD and RSI confirm the upward momentum.
- The falling wedge breakout is likely, provided the price sustains above resistance levels.

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### **6. Recommendation / Trading Strategy**
#### **Bullish Strategy**:
- **Entry Point**: Buy above **24,620.50** after a strong breakout confirmation.
- **Targets**:
- First target: **24,857.75** (major resistance).
- Second target: **25,000.00** (psychological level).
- **Stop Loss**: Place a stop-loss below **24,450** to manage downside risk.

#### **Bearish Strategy**:
- If price fails to break **24,620.50**, consider shorting below this level.
- **Target**: **24,300.00**, with a stop-loss above **24,650.00**.

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### **7. Conclusion**
The chart suggests a strong **bullish bias** supported by technical patterns, bullish divergences, and increasing momentum. Buyers should focus on breakouts above resistance, while sellers should wait for rejection signals at key levels. The overall outlook is **bullish**, with potential for upward movement toward resistance levels.