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Nifty

Nifty continued to face supply pressure around the immediate resistance level around 21800 as it retracted back to close below its previous days swing low. The selling pressure was witnessed across most of the banking & financial stocks as Nifty bank too engulfed its previous days gains. The nifty has also registered a close below its 20 DEMA support level of 21680 for the first time during this series. With its RSI falling towards its 50 level & ADX continuously drifting lower it’s a strong sign for follow through weakness to be witnessed during the week. Options data now indicates 21800 has an immediate hurdle while 21600 & 21500 put buildup is significant. Any slippages below the same could amplify the decline towards the major support base around 21000 for the February series. Hence the outlook remains the same we anticipate further oscillating moves within a broad range with multiple resistance clusters around 21800-22000 level while key support zone is now placed at 21500 followed by 21000. As the India VIX continues to trend up above its 5 WEMA support level of 14.40 but faces resistance around its 200 WEMA level of 16 its ideal for traders to remain cautious while deploying any leverage directional trades.

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