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Nifty

Nifty collapsed towards its 20 DEMA support zone around 21950 but continues to hold its close above the same. There has been evidence of exhaustion which was displayed in form of narrow ranged candlestick bodies near 22200 supply cluster. Range bound mode is expected to continue until the 22000-support level is defended along with some slight profit booking. Options data for the final day of the series shows shift in bounds towards 21800 to 22100, with 22000 serving as the key pivotal support for the day as well. Technically going forward, the index is expected to remain oscillating within a broad range with limited upside towards 22390-22500 while lower band could be placed around 21840-21600 for the upcoming series. Since India VIX (Volatility /Fear Index) still remains confined within 16 level (its 200 WEMA level) & 14.70 (its 5 WEMA); a consolidation breakout would be an early sign for traders to cut long positions & prefer a sell on rise mode within the broad range. Outlook still remains neutral to cautious as sector rotational move would attract further rise in volatility. For the day expect the index to gyrate within 22100-21900 with a high probability of the expiry within 22000-21950. Declines if any towards 21840 could provide an intraday opportunity to participate in a short-lived pull back trade.

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