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Nifty retained its close near the 22000 psychological support zone. Its 20 DEMA support zone is also placed around 21950. Occurrence of a ‘Spinning Top’ formation on its daily scale is a sign of caution despite its occurrence within the broad consolidation mode. Range bound mode is expected to continue until the 21840-support level is defended while upside remains capped around 22240. Options data at the beginning of the series indicates 21800-22200 as key bounds while highest OI cluster for both Puts & Calls is placed at 22000. Technically going forward, the index is expected to remain oscillating within a broad range with limited upside towards 22390-22500 while lower band could be placed around 21840 followed by 21600 for the initial part of the series. Since India VIX (Volatility /Fear Index) still remains confined within 16 level (its 200 WEMA level) & 14.70 (its 5 WEMA); a consolidation breakout would be an early sign for traders deploy a sell on rise mode within the broad range. Outlook still remains neutral to cautious as sector rotational move would attract further rise in volatility.

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