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Nifty

Nifty defended the 19500-support base well on the final day of the week. Eventually it formed a ‘Doji’ candlestick pattern formation indicating indecisiveness around the support zone of 19540. Earlier during the week we saw sharp decline from the resistance zone around 19840 as it lacked the necessary strength to surpass the hurdle; while back to back last two sessions we saw it respecting the lower end of the range placed at 19540. But it still lacks the necessary conviction to regain its strength above its short-term averages 5- & 20-days EMA crossover level of 19680; which would be the key pivotal for the final leg of the monthly expiry. Its trend strength indicators too slipped below their respective immediate support levels with RSI trending below 50 while ADX continues to grind lower at 20. The anticipated resistance level for the week stands at 19680 followed by 19840 while the support base is expected to remain firm around 19550-19500 itself. Options data saw a further shift in range towards 19700- 19500 for the final leg of the series. Hence leverage longs could be held until 19540 is not breached from hereon while further aggressive additions to be considered once the index trends above 19840.

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