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Nifty

Nifty continues to drift lower towards its 5 Weeks EMA which is placed at 18460. As it continued its sequence of drifting below its previous days low. Also the 20 DEMA is placed around 18440 which now becomes a key expected swing support zone for the day. Its trend strength indicators again displayed lack of strength signals as RSI declined from its overbought reading above 75 towards 60 while ADX has finally moved below its 25 level. Further slippages below the same could be a confirmatory sign of possible reversal intrend.Since the immediate weekly support at 18670 (5 DEMA) was breached at the beginning of the week, the level could be considered to yardstick to gauge any reversal in strength from hereon. Slippages if any in today’s session due to the event outcome below 18440 could easily drift it lower towards the crucial trend defining support level of 18360 below which momentumlongs as well as positionallongs should be exited. Short term traders should remain cautious as a strong evidence of a bearish reversal formation is mandatory to confirm the termination. While 18780 now stands as expected hurdle for the week.For the day a low PCR at 0.76 brings in hope with its option pain zone standing at 18600. Key strikes to monitor would be around 18700 to 18400 as event reaction could remain confined within the same.Banknifty has so far managed to maintain its close above its 5 DEMA zone with multiple narrowranged bodies since last expiry day. Its option pain stands at 43100 with a low PCR at 0.77. Its SKEW defined bounds are placed at 42700-43600 ready for an either side wild swing.

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