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Nifty

Nifty continued to retain its bullish sequence throughout the week as it never closed below its previous days swing low despite of the ongoing spike in volatility. On its daily scale it is trending confidently above its 5 & 20 DEMA levels of 22385 to 22336 respectively. The crossover of these short-term averages along with its RSI trending above its 50 level is a good sign of confidence amidst the traders. Option data indicates elevated base formation around 22500-22400 zone for the week while higher activity bound shifts higher towards 23000 from 22800, which compliments the conviction amidst bullish traders. Technically from here on 22050 becomes a key pivotal support for the fresh unfolding event momentum & hence serves as an ideal stop loss zone for positional longs. While traders may continue to exercise caution & refrain from building leverage positions until the event volatility cools down. Traders are advised to remain selective while deploying longs & utilize intraday declines to add longs rather than chasing breakout moves.

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