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On its daily scale the rebound from its 20 DEMA support zone of 17340 has been commendable but a reversal patternseems missing. Its RSI is flat near 62 but its ADX is now falling back, which is a sign of exhaustion / cool off inmomentum.We expect the rebound to face resistance during the day around the 17700 zone where its 5 DEMA level was placedwhile17780 now looks like a stiff resistance for any major reversal in momentum. Ahead of the crucial monthly expirydayhighestPE OI concentration stands at 17500 itself which also remains the most active strike hence any unwinding inthesamecouldpull the index back below 17340 mark. On the upside 18000 CE OI bound remains firm & an expiry belowthesameremainscertain. Positions ahead of the expiry look relatively light as PCR is at 0.98, which opens up the possibility of aneithersideswings between 17700-17400 during the day.It’s ideal to remain cautious, reduce trading positions &deploy ahedge-basedapproach until a meaningful time correction is witnessed. Since the index has managed to breach to reboundfromits20DEMA support of 17340 any breach of the same again could lead to massive unwinding pressure.

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