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Nifty

The recent Bullish Hammer formation implications are now active as the index managed to close above 16830 yesterday. The occurrence of the pattern near the exiting multiple support zone is an indication of a likely bounce back reversal towards 17660. A closing above 17060 remains an immediate requisite for the reversal pattern implications to gather momentum via a short covering move to unfold the move towards 17240 for the week. Nifty breached below the crucial mark of 17000 last week while trend strength indicators still remain neutral as RSI retraced itself from the 50 mark while ADX is still placed in its neutral zone. The multiple support zone placed around 16890-16780 has acted as a cushion again to absorb the on-going selling pressure. Option bounds for the week are placed at 17000-16500 respectively with a shift upwards to 16800 & hence a firm close above 17060 would trigger a dynamic short covering move. A breakout above 17060 remains an immediate requisite for bullishness to persist while a firm breakdown from hereon only on a confirmatory close below 16700 would negate the intermediate bullish trend. For the day, expect Nifty to revisit 17000 mark & establish a close within 17000-17100 zone while BankNifty may see a comfortable expiry above 35400-35100 zone.

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