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Nifty

Effect of the ongoing positive divergence on its daily RSI may last for the coming week as index managed tocloseaboveits5DEMA zone. But the Trendline resistance around 16560-16605 zone would be a critical hurdle for the index toshapeitsrecovery journey. With no signs of a firm reversal on its weekly scale & both trend strength indicators lacking evidenceofafirm reversal the temporary rebound could be witnessed during the week with multiple resistance hurdles from16480+which could keep the outlook hazy for the final leg of the May expiry. As of now the evidence suggests to continuewithalong short positioning until the index is locked within the above mentioned range of 16605-15800 with 16200beingthemidpoint of this range for gauging the strength during the expected mean reversion play. Ideal to remain contraoncenearthe bounds with 16200 been the intermediate stop for an either side swings during the week.

Nifty Chart

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