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Nifty

Nifty formed an ‘Inside Bar’ / Homing pigeon reversal candlestick formation. The occurrence of the pattern near its 20 DEMA support zone is a good sign of stability & revival in bullish trend sequence. An upward close outside the 22710 zone would serve as a confirmation of the reversal pattern & resumption of an up move beyond 23030. Options data indicates 22500 as a strong call & put writing zone so far & hence serves as a make-or-break level for the coming week. While 22000 holds as strong support with confident writing witnessed even during Friday’s session which looks like a confident base despite of the ongoing event uncertainty. A hint of instability might be seen as the election results get closer which could increase market volatility. Traders may continue to exercise caution & refrain from building leverage positions until the event volatility cools down or the index display a confident closing outside 22710 zone. Traders are advised to remain selective while deploying longs & utilize intraday declines to add longs rather than chasing breakout moves.

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