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Yesterday again the index respected the Inverse hammer support formed on Friday as it regained from its intraday losses toregisterapositive close.The support around 18300 is well defined now; irrespective of a consecutive attempt to close belowthe samehavefailed.On the flipside the negative crossover zone of 5 & 20 EMA around 18488 should act a resistance. Weekly options data indicatesatrading range at 18500-18000 with 18300 now as a make-or-break level for the series. With PCR jumping back to 1.01; thebouncebackagain towards 18500 should be utilized to lighten up positions & avoid breakout trades As indicated last week the patternbreakdowncandle is not so convincing as its real body is relatively smaller. Hence only a decisive close below the 18260 fromhereonwouldbetheconfirmation for the same. Until then expect further gyration.On its oscillators front; RSI has already moved below50 advocatingfurtherweakness while ADX has curved up & on the verge to register a breakout above 25 (threshold for directional momentum) whichisasignof bearish mode to continue. Pullbacks if any within the broadening pattern from hereon would be temporary & hence any breakouttrades on the upside should not be chased. Short term traders should continue to retain their long short strategy with moreemphasistodeploy further shorts in case of a pullback until a meaning full reversal is not evident; current stop to be placed on a weeklyclosingbasisabove 18820 while pattern target rests below 17980.

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