IGI Logo

Nifty

Despite the strong gap up opening Nifty faced supply pressure near the 18400 zone as it closed the day marginally above the18300level. On its daily scale it looks like a ‘Broadening’ pattern in formation stages with its bounds placed at 18460-17980 as of now.Itstrendstrength indicators still compliment the ongoing bullish mode to sustain as ADX is trending higher around its 34 level whileRSI isyettohit its overbought zone with no major signs of exhaustion or divergence yet. Hence we may witness consolidation withinthis ‘Broadening formation’ in the coming weeks ahead. The ongoing sequence of gaps is also yet to witness an ‘Exhaustion Gap’; whichcould eventually establish a probable top once confirmed. On the broader scale area around 18300 has remained as a supplyzonehenceleverage positions should be avoided. Though we are yet to witness any distortion or diverging signals within the ongoing trenditsidealto remain cautious once around 18300-18460 zone where booking profits could be healthy, but avoiding any fresh leverageoneitherside should be one’s priority. Hence its ideal to maintain existing non leverage long positions with a trailing stop loss at 18130. While17880 could be considered as a yardstick level to gauge any sudden breakdowns or reversal trends if they unfold during this month.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.tradebulls.in/disclaimer
SEBI Registration number is INZ000171838 

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer