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Index witnessed a brief pause after hitting record high zone near 20000. Profit booking has pulled the index back towards its 5DEMAsupport zone near 19700. There is no sign of a price reversal formation but its RSI displayed a negative crossover while theothertrendstrength indicator has been trending higher at 60. Divergence in indicators could be an early sign of divergence in price trendstrength.The ongoing momentum would stall in case 19680 gets breached on a consecutive basis. Earnings announcements wouldkeepthevolatility high which could push the index which could dampen the bullish sentiment for a while. Hence traders should remaincautiousfor a while & avoid chasing momentum but retain their existing long positions with adequate hedge. The ongoing momentumstrengthcould be distorted in case the index slips below its 5 DEMA support level of 19680 while the up side remains open till 20120followedby20340.

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