Nifty 50: Monthly Supply Zone Rejection Signals Bearish Momentum

• The weekly chart shows a proper rejection from a sloping downtrend line, confirming sellers’ dominance.
• This week’s candle has formed a Bearish Marubozu – a long body with tiny wicks – indicating strong selling pressure.
• Structurally, this candle aligns with an Evening Star type reversal, reinforcing the bearish bias.
• Key takeaway: Weekly chart clearly favors the bears until price sustains above the supply zone.

• On the daily chart, selling pressure has been continuing for the past few sessions.
• Today’s candle is a Gap Down Bearish Candle, forming part of a Three Black Crows pattern on Nifty 500.
• This confirms a short-term trend reversal and strong bearish momentum.
• The next major support lies around the demand zone Nifty (~24475). If price tests this zone and reverses, we may see a bounce.
• However, if the daily close is below this demand zone in upcoming sessions, expect further downside.

• Monthly supply zone has triggered a bearish reversal, coinciding with the Weekly Downtrend line.
• Strong Bearish Marubozu on weekly close signals a shift in trend toward sellers.
• Daily Three Black Crows + Gap Down candle confirms strong selling pressure in the short term.
• Overall bias remains bearish until support near the demand zone shows a potential reversal.

“Patience and discipline are your best allies in trading; let the charts guide you, not emotions.”

This analysis is purely for educational purposes and is not a trading or investment recommendation. I am not a SEBI registered analyst.