The Nifty 50 index experienced a significant recovery, with a 2.50 percent surge on Friday. This surge led to a break above the crucial 200-day exponential moving average (200-DEMA), indicating a shift in market sentiment.

The index successfully surpassed its immediate resistance at 23,800, establishing a new immediate bottom at 23,200. The 50-week exponential moving average (50-WEMA) provided strong support, as it has historically been a key support level. Additionally, a Bullish Hammer candlestick pattern has formed, further supporting the potential for continued upward momentum.

However, the Nifty index is now approaching a critical psychological resistance zone between 23,900 and 24,000, which has consistently posed challenges in the past. Despite strong Call writing at these levels, indicating trader caution, the index closed above its 10-day exponential moving average (10-DEMA), and the RSI rebounded from oversold conditions. This suggests that bullish sentiment remains strong in the market.