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Nifty

Post the consecutive Doji formations finally the Nifty has formed a Bullish hammer formation on its daily scale. Occurrence of such consecutive bullish candlestick formations is an early sign of bullish strength. The hurdle at 19880 has now become a key hurdle with major resistance at 20000-20200 for the coming weeks ahead. Daily scale indicators have also started to display signs of strength as RSI moved back towards 50 while ADX line is at 32 with its + DI line now curving upwards near 22 which is a complimentary sign for the upcoming reversal. Since major trend stop still remains at 19620 which also coincides with the 61.8% retracement support zone of its prior impulse wave. The said zone has a good scope for price stability which could be an opportunity area for redeployment of long positions going forward in the upcoming October series until then one can remain light on positions & maintain a long short equation until a reversal gets set at least on its daily scale. For the day expect Nifty to retain its strength above the 19600-support base while upside remains capped till 19880 with minor resistance zone around 19770-19830. Probable expiry zone is also placed around the same. For Banknifty major range remains at 45100-44400 itself. Expiry pain stands at 44700 as of now which is expected to move higher.

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