Despite the weakness the index managed to establish a close above the 19500 level - Tradebulls Securities
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Nifty
Occurrence of an ‘Inside Bar’ formation was followed by yet another bearish candle near the 61.8% retracement support zone. Despite the weakness the index managed to establish a close above the 19500 level. 19600-19440 remains an immediate demand zone with reference of its prior impulse wave from the base at 19220 to 20222. Both its trend strength indicators are still not in a conclusive zone & hence there could not be enough evidence to conclude a likely upward shift in support base yet. Derivative data is also indicating a dependable reversal zone within 19600-19440; the directional momentum play would only unlock once the index starts trending above 19740. With the ongoing gap sequence progressing well the possibility occurrence for the important ‘Exhaustion Gap’ to be formed around the anticipated retracement support zone of 19500-19400 (19440 is 78.6% retracement support). The hurdle has now shifted lower at 19780 with major resistance at 20000 for the coming weeks ahead. Leverage longs should be added once a firm reversal signal is confirmed above 19790 on closing basis until then its ideal to remain cautious & retain a long short equation with low leverage
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