05-01-2024 09:44 AM | Source: Tradebulls Securities Ltd
Nifty regained its strength as it climbed back above its 5 DEMA level of 21620 but it failed to close above its previous days high - Tradebulls Securities

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Nifty

Nifty regained its strength as it climbed back above its 5 DEMA level of 21620 but it failed to close above its previous days high. Its relative strength action has been displaying a negative divergence on its RSI which is also a sign of diminishing bullish strength but the index is yet to register a consecutive close below its previous days low. Hence it is too early to assume any major loss of momentum or change in trend hence its ideal to keep trailing stop higher towards 21470 on closing basis for any fresh additions in long position. The ongoing dip could extend its leg towards its intermediate support zone around 21290 (20 DEMA Support Zone) in case the index slips further to close below the 21470 level. Strategy remains intact until a reversal formation occurs or the index records a consecutive closing below its swing support range of its prior days low. It is best redeploying leverage longs once above 21840. While declines if any could be used to add longs with a trailing stop level of 21470 until broken on closing basis while the major trend stop level remains intact at 20980

 

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