Nifty's Next Move: Crucial Support and Resistance Levels

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The Nifty is currently finding support at 23,342, aligning with both the short-term and long-term trendlines. the support level, short-term trendline, and long-term trendline—are coinciding, which did drive the market upward. However, the long-term trendline is not entirely reliable and lacks strength. We can better judge its significance if the Nifty retests and respects this level in the future.

For now, there are three possible scenarios:

Rejection at Resistance: The Nifty is currently trading above 23,663 and approaching the 23,860 level. It may get rejected at this level, coinciding with the trendline, and move back down.

Breakout and Trend Change: The Nifty could break above the 23,860 level and the trendline, signaling a change in the market trend and the start of an uptrend. This would invalidate the head and shoulder pattern.

Bearish Breakdown: Alternatively, the Nifty could break below the 23,342 support level, turning bearish and potentially reaching the next support level at 23,063.

These scenarios will help determine the market's direction in the near future.