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Yesterday’s recovery from its early morning low was on cards as the index had hit its respective oversold zoneonitsintraday time frame. On its daily scale the rebound lacks any pattern significance hence the bounce back may betemporaryled by global market moves. On its weekly scale ‘Dark Cloud Cover’ formation is a sign of exhaustion to weaknesswithintheongoing up move. The pattern would be confirmed once the index registers a close below 18360.Occurrenceof a‘DarkCloud Cover’ formation on its weekly scale needs a confirmatory close below the 18360 level belowwhich therecouldbeanuptick in bearish momentum as index is expected to remain confined within the ‘Broadening Pattern’ range of 19020-17980.On its daily scale both indicators display lack of strength as RSI continues to drift lower towards its 50 zone whileADXisalready placed in its negative zone. Options data indicates key bounds at 18500-19000 for this week. With OI PCRswingingfrom 0.76 to 1.05; the bounce back may witness profit booking in todays session.Short term traders shouldcontinuetoretain their long shorts positions throughout the week. While pullbacks within the broadening pattern fromhereonwouldbe temporary & hence any breakout trades on the upside should not be chased.

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