NIFTY – Market Note

Nifty moving back and closing into the December 22 gap is not a great sign
for the near term. It clearly shows that momentum has faded and the market is
not ready to trend just yet.
That said, this does not mean the market has suddenly turned bearish.
What this development really does is extend the sideways and choppy
phase. Rallies struggle to follow through, dips find buyers, and price action
remains frustratingly range-bound. This makes the setup not bullish, but not
bearish either.
From a medium-term perspective, a little more pullback would actually be
healthy rather than harmful. It would help reset momentum, absorb supply,
and build a stronger base for the next meaningful move higher. As long as the
decline stays orderly, weakness should be seen as digestion, not damage.
It increasingly feels like only a January effect may finally push Nifty out of
this extended consolidation band, as fresh flows and positioning reset for the
new year.