IGI Logo

Nifty

Nifty recorded yet another swing close above its 5 DEMA support line, demonstrating its continued respect for it. As it stayed inside the massive selling bar formation of 20DEC 2023, the index created a comparatively small body candle. This culminated in a powerful unwinding session that confirmed the near-term top at 21600.The index requires a slow price and time correction after a strong price runup from 19000, with its current support base in the 20860-20710 range. It is only possible to expect a significant correction if the index closes each week below the 20710 zone. However, a successful consecutive closing above the record high of 21,593 is likely to be a significant barrier and could start a new leg of the rally. Option data also shows that the immediate range will stay at 21500–21000 itself, with 21300 serving as the approximate midpoint and the outer wings for the last leg of the series being placed at 20800 and 21600, respectively. Hold off redeploying longs near 20810-20710 until a near-term bullish reversal pattern appears, and anticipate a sound time and price correction to create a new, raised foundation for the current bullish structure.

Please refer disclaimer at https://www.tradebulls.in/disclaimer

SEBI Registration number is INZ000171838