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Nifty

Yesterday again the index rebounded from the expected resistance level around 18488, which should act as an immediateresistancetotrack for the rest of the month.Selling pressure intensified once Nifty slipped below the 18300 support which could act as aresistancezone for the day.Both the trend strength indicators are placed in their respective negative zone with ADX closing above 25whichisasignof further directional momentum play after the 5 & 20 EMA around crossover around 18488 .Pullbacks if any within the broadeningpattern from hereon would be temporary & hence any breakout trades on the upside should not be chased. Short termtradersshouldcontinue to retain their long short strategy with more emphasis to deploy further shorts in case of a pullback until a meaningfull reversal is not evident; current stop to be placed on a weekly closing basis above 18820 while pattern target rests below17980.Weekly options data indicates a trading range at 18300-18000 with 18300-18250 now marked as a probable expiry zone While for Banknifty the pain zone is resting at 43000 -42800 Intraday traders should await for a meaningful pullback to mature during the day todeployfreshshorts as the OIPCR is rebounding from its extreme oversold readings of 0.69 for Nifty & 0.50 for Banknifty.

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