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Nifty

On the final session of the week, Nifty wiped out its entire weekly gains as it engulfed almost 3 sessions up move before endingthedaymarginally above its 20 DEMA support of 22428. The pattern formation on its weekly scale exhibits the characteristics of anormal ‘Doji’& not a ‘Gravestone Doji’ candlestick formation as the pattern has occurred within a consolidation & not in a isolated area. Theimmediate requisite for further weakness towards 22000 (Lower end of the ‘Rising Channel’ pattern) is a confident close below22380during the early part of the week. On the flip side sustenance above 22640 would again develop a hope rally towards 22900-23040whichcontinues to remain a key supply zone for the current rally. Since the immediate base is elevated towards 22400 hence momentumlongsshould be avoided in case the trailing stop around 22380 gets violated on a closing basis. Traders are advised to remain selectivewhiledeploying any either side trades until the index continues its movement within the 23000-22000 zone with 22600 nowbeingthemidpoint of this range. Leverage positions could be avoided for time being until clarity emerges even on its daily scale.

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