Chart Analysis: Nifty 50 Index (1-Minute Chart, May 16, 2025) Pattern Observed: The price action is forming a rounded bottom (or cup shape), often considered a bullish reversal pattern, especially after a downtrend.
The index bottomed out around 24,925, gradually forming higher lows and approaching resistance near 25,050.
Key Support & Resistance Levels: Type Price Level Comment Resistance 1 25,105 Recent swing high; strong resistance Resistance 2 25,050 Near neckline of the rounded bottom Support 1 25,000 Psychological & intraday support Support 2 24,950 Previous consolidation zone Support 3 24,875 Day low and strong bounce point
Trend Setup Overview: 🔹 Short-Term View (Intraday to 1 Day): Bias: Bullish breakout forming
Setup: Rounded bottom pattern suggests possible continuation above 25,050.
Action: Buy on breakout above 25,050 with SL below 25,000. Target: 25,100 – 25,150
Risk: If it fails to hold 25,000, short-term trend weakens.
🔹 Medium-Term View (1 Week – 1 Month): Bias: Neutral to Bullish
Scenario: Needs to sustain above 25,100 and break recent highs to continue momentum.
Setup: Watch for a retest of 25,000-25,050 zone; successful bounce = strength.
Trigger Levels: Bullish above 25,150; Bearish if breaks below 24,875.
🔹 Long-Term View (1 Month+): Bias: Bullish (Assuming continuation from higher timeframes)
Outlook: If the index holds above 25,000 in upcoming sessions and breaches 25,150, it may head toward 25,300–25,500 zones.
Key Long-Term Support: 24,850-24,875 (if broken, revisit trend strength)
Trade Setup Ideas: 📈 Bullish Setup: Entry: Above 25,050 (rounded bottom breakout confirmation)
SL: Below 25,000
Target 1: 25,100
Target 2: 25,150+
📉 Bearish Setup (Only if pattern fails): Entry: Below 24,950
SL: Above 25,000
Target: 24,900 / 24,875
🔍 Conclusion: Current Trend Bias: Transitioning from bearish to bullish.
Rounded Bottom Formation: Indicates bullish potential, pending confirmation above 25,050.
Volatility Note: Intraday traders should watch 25,000 closely as the pivot level.
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