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Nifty

Nifty has entered the anticipated caution zone of 22750-22990. Yesterday itself it faced profit booking pressure around the same as it formed a ‘Bearish Belt Hold’ formation reconfirming the resistance. On the other hand, Nifty Bank is still displaying enough strength to climb further towards 49600 zone once it clears the 49000 level which could eventually help the index to spend some time within the 22750-22990 zone. Both its trend strength indicators are trending higher with RSI around 65 followed by ADX at 32 level which compliments the ongoing up move to sustain. Option data states that 22500 should continue to act a as dependable support zone while 22800 remains an immediate hurdle followed by 23000. Since the index is in close proximity of its weekly channel upper end & a firm reversal formation is missing its ideal to remain cautious while chasing any breakout moves & continue the buy on declines strategy until 22300 holds.

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