IGI Logo

Nifty

Nifty displayed resilience around its 5 DEMA support level at 17998 despite the strong gap down opening; as it recoveredmost of its losses during the day.On the pattern front the occurrence of an Engulfing Bearish pattern remains aconcern.Butthe pattern needs a confirmatory close below 18000 from hereon to activate its bearish characteristics.Cautiousnesswasexpected throughout the week as Nifty approached its historical supply zone around 18300.With its ADX trendinghigherat29 zone is the only positive amidst the overbought reading on its other trend strength indicators. RSI rebounds fromthe70zone while OI-PCR retraced further to 1.19 during the day. It’s likely that the ongoing momentumcould stretchitself furthertowards 18300-18460 zone until 17880 holds.Recent breakout above the 17880 congestions with a GAP displayedtheBreakAway Gap characteristics as further unwinding pressure post the immediate consolidation could wouldonlyunlockonce above 18200.Options data for the fresh weekly expiry clearly states 18200 to remains as a key resistancewhilethesupport bound is now at 18000 followed by 17700 itself.Hence fresh longs to be maintained with a stoploss nowbelow17880 & should be further elevated towards 18020 once a close is established above 18200.

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