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Nifty

Nifty consolidated within the 5 DEMA & 20 DEMA range of 24495 to 24270 throughout the day. The reaction low during the union budget announcement near its psychological base of 24000 may be revisited but may not close below the same as indicated by the options data. With its OIPCR around its oversold zone & no signs of unwinding in the option base of 24000 indicate towards a range bound session within 24400 to 24000 itself. From a trend perspective the recent occurrence of a ‘Bullish Hammer’ is a sign of confidence but a close above 24665 would mark the termination of the price correction, until then expect consolidation to time correction to continue. With the RSI displaying a breakdown and the ADX continuing to trend at 27, both of its trend strength indicators are diverging & display lack of conviction. Options data indicates a firm base at 24300 followed by 24000 while a move above 24500 would unlock a major short covering rally. For the day expect consolidation within 24000-24400 zone while Bank nifty could continue to see further slippages towards 50000

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