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Nifty

Nifty saw yet another tepid session at the beginning of the month as it formed another ‘Doji’ candlestick formation on its daily scale. It failed to surpass & sustain above its previous day’s high around 22500 & eventually closed lower at 22453. Both its trend strength indicators are trending higher with RSI around 61 followed by a breakout move in ADX above its 25 level. Their respective placement in fact indicates likely follow through in bullish momentum. Option data at the beginning of the April series states that 22200-22000 should continue to act a as dependable support zone while 22500 remains an immediate hurdle followed by 22700, even yesterday the call writers remained confident at 22500 while fresh put buildup is witnessed around 22300 which coincides with its 5 DEMA support level of 22530; which may act as an immediate support. Since a firm reversal formation is missing on its weekly scale its ideal to remain cautious while chasing breakout moves its ideal to focus on both long & short opportunities until the index rests within the 22500- 22000 range.

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