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Nifty

The index is expected to revisit its psychological 21,000 support level during this profit booking phase where the Nifty50 could find support during this week. While 20,701 is going to be a key support level for the remaining part of the series. An ‘Inside Bar’ formation followed by ‘Doji’ candlestick pattern near its life high zone was a sign of caution for the ongoing bullish momentum which we have been highlighting since the beginning of this week. Its pivotal support is the rising gap formation near 21070, which could now be regarded as a crucial stop loss level while chasing continuous bullish momentum which coincided with the most recent consolidation breakout. Post breaking of its recent gap support (21210) the index confirmed the immediate correction with a strong reversal sign. As per options data 20,800 is expected to be a critical support level; however, resistance could be found at the 21,200–21,400 zone, and 21,600 appears to be the top for the next few weeks. It’s ideal to wait for the occurrence of a near term bullish reversal pattern to redeploy longs.

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