Nifty saw a strong recovery session as it regained its strength - Tradebulls Securities
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Nifty
Nifty saw a strong recovery session as it regained its strength to close the day at 21840; near the upper end of the trading range. It respected the expected support zone around 21540-21600 zone during the early part of the day & continued to witness a strong short covering led rally throughout the session. It has also closed above its 5 DEMA level of 21770 & hence its 20 DEMA level of 21690 now becomes an immediate support level for the day. Despite of the up move the indicators are still placed within their respective neutral to negative zone & continue to display lack of strength. While options data indicates confident put buildup at 21700 & 21800 strikes while major call writing bound stands at 22000 itself. 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 as we anticipate further oscillating moves within a broad range with multiple resistance clusters around 21800-22000 level while key support zone is now placed at 21500 followed by 21000.
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