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Nifty

Nifty retains its incremental strength as it approaches the breakout zone as indicated by its indicators which remain static despite yesterday’s bearish candle. So far it has been trending well within the bounds laid by the ‘Pitchfork tool’ with immediate support been placed around 16380 while a resistance has been witnessed around 16680. Yesterdays move above 16680 could not sustain but it retained its close above its 5 DEMA around 16570 which is expected to provide the necessary support for the day. A close above 16680 would help the index scale its leg towards 17000 in the coming days itself.

Though its trend strength indicators saw a decline but none has any major signs of divergence in their respective relative strength. We expect the index to retain its oscillation mode & trend higher within the bounds of the pitchfork tool. Directional momentum play may resume post a brief break from its pattern resistance for a target which remains intact around 17000. Strong sectoral rotation may provide good long short opportunities during the day within the ongoing bullish trend while momentum traders should continue to hold & add longs until 16380 remains intact. For the day expect index to retain its strength within this range of 16570-16760 with pain shaping up near 16650 zone.

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