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Nifty.

Sequence of narrow ranged bodies continue to exhibit lack of incremental strength despite of the positive close. Broader market continues towitnessprofit booking throughout the day as it faced supply pressure once Nifty was near the 18400 zone as it closed the day marginally above it. Onitsdailyscale it looks like a ‘Broadening’ pattern in formation stages with its bounds placed at 18460-17980 as of now.Its trend strength indicators still compliment the ongoing bullish mode to sustain as ADX is trending higher around its 36 level while RSI is at 69 yet to hit its overbought zoneabove70;with no major signs of exhaustion or divergence yet. Hence, we may witness consolidation within this ‘Broadening formation’ in the comingweeksahead. The ongoing sequence of gaps is also yet to witness an ‘Exhaustion Gap’; which could eventually establish a probable top once confirmed. Onthe broader scale area around 18300 has remained as a supply zone hence leverage positions should be avoided. Though we are yet to witnessanydistortion or diverging signals within the ongoing trend its ideal to remain cautious once around 18300-18460 zone where booking profits couldbehealthy, but avoiding any fresh leverage on either side should be one’s priority. Hence its ideal to maintain existing non leverage long positionswithatrailing stop loss at 18130. While 17880 could be considered as a yardstick level to gauge any sudden breakdowns or reversal trends if they unfoldduring this month.

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