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Nifty

Nifty restricted its action within its previous day’s trading range itself but closed the day on a positive note. Profit booking pressure may continue near the supply zone around 21900-22000 while a close above its 5 DEMA support level of 21790 would be critical from hereon from a momentum long perspective. Technically the price action is expected to remain oscillating within a broad range. It may gather directional momentum only above 22140 while support base looks elevated at 21540 below which we may witness a major corrective price action to unfold. Option data indicates confident bounds at 22200-21600 with a midpoint around 21900. Its trend strength indicators are diverging with RSI trending near its 60 zone while ADX is still quoting near its 19-zone; displaying lack of conviction. For the week expect the index to remain oscillating within a broad range with multiple resistance clusters around 22000 till 22240 level while key support zone is now placed at 21700 followed by 21500. As the India VIX to continues to trend upward its ideal for traders to remain cautious while deploying any leverage longs & wait for pullbacks during the day

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