IGI Logo

Nifty

Nifty saw a positive follow through action in yesterday’s session but closed the session by forming a ‘Doji’ Candlestick pattern on its daily scale. Its immediate support now stands at 21840 for the day below which the index will again witness unwinding pressure. Despite of the recent up move both its trend strength indicators remain diverging with RSI gradually trending higher at 57 while ADX continues to drift lower at 13 displaying lack of conviction. Options data indicates confident call buildup at 22000 & 21900 strikes while major put writing bound stands at 21700 now. As the India VIX continues to trend up above its 5 WEMA support level of 14.70 but faces resistance around its 200 WEMA level of 16 its ideal for traders to remain cautious while deploying any leverage directional trades. Hence the outlook remains cautious until the index oscillates within this ongoing broad range with multiple resistance clusters around 21800-22000 level while key support zone is now placed at 21500.

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

SEBI Registration number is INZ000171838