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Nifty

Nifty continued to display resilience but it failed to establish a close above its 5 DEMA level of 24270 for the third time. The ongoing price action has witnessed a contraction in range which indicates a likely breakout from the ongoing range of 24445-23840 to be witnessed soon. Both its trend strength indicators remain weak with its daily RSI below 50, while the ADX has been rising around 30, as both of its trend strength indicators are steering with the price action. The negative crossover zone of its 5 and 20 DEMA, or 24455, is now the immediate resistance level while the support zone remains at 24000-23800 itself. With no major price reversal formations on its larger degree timeframes yet there is a good possibility of a ranged bound oscillated move within the wider range of 23840-24450 zone throughout the week. The current major base stands around 23840 (5 MEMA Support) which coincides with options base around 24000 followed by 23800 which still remains an ideal zone for buying. Momentum investors need to keep adding long positions until the weekly closing basis level of 23990 holds, and traders can retain some long short positions until the index rests within this broad range of 23840-24455.

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