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Nifty

Nifty commenced the truncated week on a quiet mode as it remained confined within its previous day’s trading range which eventually concluded into an ‘Inside Bar’ formation. It faced resistance on the higher side as it restricted its move below its 5 WEMA level of 22140. On its daily scale, it continued to face profit booking pressure which push it back below its 20 DEMA level of 22020. The recent breakdown form the ‘Channel Pattern’ price pattern is witnessing a pullback move which may extend towards 22140-22210 zone looks like an optimum zone for pullback. But its concluding level remains at 22270 for development of a reversal formation. Both its trend strength indicators are trending lower & hovering near their cautious zone. Options data indicates firm bounds at 22200-22300 while support zone is placed at 22000 & 21800 respectively. Since the short-term support weekly base was breached its ideal to refrain from building positional longs until there is a firm reversal pattern formation on its weekly scale or when the index clearly surpasses the resistance zone above 22200. Until then the trend would provide sell on rise opportunities.

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