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Nifty

Occurrence of ‘Doji’ candlestick formation displays lack of confidence at higher levels. Index continues to hold its opening gains & continues to trend higher above its 5 DEMA support of 24105. Breakout from the upward channel pattern indicates a price target upto 24560 but a confident closing day is still waited for its confirmation of improved strength as the index gradually moves higher. Both its relative strength indicators are diverging so far as RSI trends higher around its overbought zone while ADX is now approaching its 25 zone. Weekly option data indicates an immediate band of 24500-24200 itself. Breakdown below 24100 (its 5 DEMA support) would be critical & would lead to loss in bullish momentum until then the gradual up move may continue. With strong sector rotation moves already unfolding since last few days its advised to remain cautious which chasing any breakout trades while buy on declines strategy for intraday moves remain healthy until the index holds its close above its rising 5 DEMA level.

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