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Nifty

As Nifty established a cluster of "Doji" candlestick pattern around its life high zone last week, it showed more signs of not being confident enough to break through the major obstacle at 23560. Indecisiveness and lack of confidence are indicated by the repeated recurrence of "Doji" formations with profit booking indicators close to their life high zone. However, it is continuing to close above the high impact trading candle zone of June 4, 24 with a high around 23180, suggesting that the moderate upward trend may continue. A clear breakthrough over 23560, however, would trigger a momentum play. The 23180 level is currently the best place to assess the continuation of the bullish trend, but a sustained rise over 23560 may encounter additional hurdles as well. For this series, options data shows a confident writing base around 23000 and a strong upper bound at 24000.Weekly options show that a distinct momentum trend may develop on either side of the immediate range of 23300–23500. Sustaining above 23560 would be a positive indication that the trend momentum is continuing and might drive the index up to 23900. Hence traders may utilize intraday dips to add longs until 23180 holds; while aggressive longs may be opted only once the index registers a firm close above 23560, for traders to pursue breakout moves towards 23900.

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