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Nifty

Occurrence of a ‘Spinning Top’ formation with a close above its 5 DEMA support is a good sign of expected reversal strength. Nifty50 registered a rebound from the 61.8% retracement support of its latest upmove from 18840-19233 move. With its RSI displaying a positive crossover & ADX declining below is a complimentary sign for an extended move towards 19300 itself. Due to the recent intraday scale positive divergence a close above 19150 was anticipated & awaited to unlock directional strength. The impending move could eventually stretch towards 19300-19450 in the coming days itself. While the base remains intact at 18850 itself. It is best to trade cautiously & address one day at a time in the short term. It is best to take a passive approach and only look at mean reversion trades that fall into the wide predicted range of 18600-19300 with 18850 being its mid-point. On immediate basis expect the index to oscillate within the 19300-18850 range with a positive bias

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