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Despite the break below its 5 DEMA after 13 days of rally the index formed an ‘Inside Bar’ formation in yesterday’s session. Follow through action below 15500 remains a must for the corrective move to unlock towards 15330 which remains an ideal support zone for any meaningful long additions. The breakout zone near 15330 which also coincides with its 20 DEMA zone now stands as a key support for the series, while the rounding formation indicates a probable target zone at 16300 once above 16040 (Weekly Wave Count termination zone) The RSI indicator has hit its overbought zone but observation indicates lack of incremental strength but there is no sign of divergence, hence we can expect the ongoing trend to see more legs until it holds itself above 15330 . Focus remains to retain longs in traditional large cap stocks. We expect the immediate up move above 15600 towards 16040 to be challenging & hence the view remains cautiously optimistic, hence leverage on either side should be avoided.

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