NIFTY UPDATE

Nifty Breaks the Congestion Zone: A Critical Week Ahead
Nifty has finally resolved the congestion zone on the upside. The price behaviour at Friday’s
close already hinted that the odds were shifting in favour of an upside resolution, and today’s
gap-up opening has so far validated that view by convincingly clearing the resistance zone. This,
however, is not just another routine trading week. From a time-cycle perspective, as
discussed in Friday’s note, the current week carries added importance. For the ongoing up-move
to retain its strength, Nifty spot must respect and hold today’s gap on the daily chart. If this
condition is met, the structure opens up for a move towards the 26500 zone in the near term.
Overall, this is a critical phase for the index, and price behaviour over the coming sessions will
reveal whether this breakout develops into a sustained move or remains a short-lived burst of
momentum.