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Nifty

Nifty retracted back towards its 20 DEMA support zone at 21670 but managed a close on a positive note forming a bullish hammer formation. The immediate critical support level is at 21540 for the week below which the index could see a major move towards 21100-21000 final base. Technically the price action is expected to remain oscillating within a broad range of 21000-22000 for the series. It may gather directional momentum only above 22140 or below the critical support base of 21540 below which we may witness the corrective price action to unfold quickly. Option data indicates confident bounds at 22000-21500 with a midpoint around 21800. Its trend strength indicators are diverging with RSI trending near its 54 zone while ADX is still quoting near its 19-zone with its negative DI level inching higher; displaying lack of conviction. For the coming week as well expect the index to remain oscillating within a broad range with multiple resistance clusters around 22000 level while key support zone is now placed at 21500 followed by 21000. As the India VIX continues to trend up above its 5 WEMA support level of 14.40 but faces resistance around its 200 WEMA level of 16 its ideal for traders to remain cautious while deploying any leverage directional trades.

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