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Nifty

Nifty has reached the anticipated level of 26272 on time. The breakout from the recent consolidation has been with decent volumes along with rising trend strength indicator reading which is a convincing sign for continuation of trend strength. Nifty is building up nicely with the 11-day streak above the 5 DEMA signaling sustained bullish strength which is now placed at 25960. The ADX expanding above 40 reinforces the trend's continuation, and it’s clear the market has solid underlying rising support at 26000. Options data at the beginning of this series displays firm support base around 26000 followed by 25800, with a possible upside up to 27000 if the index sustains above the 26300 OI cluster during the early part of the series itself. If there is a trend change, it will only be expected if the index closes below 25820 on a weekly closing basis. Up until now, the index has managed to maintain its price action above its 5 WEMA support for 21 weeks running. The index can only effectively negotiate around the 26272-caution zone if momentum is sustained until 25960 holds. Investing in the dips is still a wise move unless there is clear evidence of a turnaround on its weekly scale.

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