It has been observed that the Nifty has formed a bearish Evening Star-like candlestick pattern on its daily chart, signaling a potential reversal. This pattern typically consists of three candles: a large bullish candle, followed by a small-bodied candle, and then a bearish candle. Currently, the Nifty is trading near 25,800, which is seen as an immediate support level at the 9-DMA. Should this level fail, the 20-DMA at 25,500 could act as further support in case of a deeper correction. On the upside, 26,000 and 26,150 are considered crucial resistance levels.
The key resistance points are 26,000, 26,150, and 26,277, while the support levels stand at 25,800 and 25,500. Traders are advised to sell on rallies near the 26,000 level, with a stop-loss set at 26,150 and a target of 25,500.
