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Nifty

Occurrence of a consecutive ‘Spinning Top’ candlestick formation is a sign of ambiguity. Proximity towards its 20 days EMA indicates an immediate hurdle around the 19300-19350 cluster. Both its trend strength indicators too are diverging now with RSI rising towards 50 while ADX is gradually falling with a rise in its positive DMI value which is about to break its 25 zone. Options data for the week ahead shows firm base at 19200 followed by 19000 while 19300 has highest CE OI build up followed by 19500. Unwinding pressure above 19300 could set the momentum for the week towards 19500 instantly. Technically, the upcoming move should extend in the next few days towards 19350–19450. At 18850, the base is still intact. In the short term, it is best to trade cautiously and take each day as it comes until the price action stays within the broad range of 19300–18600. Expect the index to hold steady until 18850, but an extended advance above the 19350–19450 range would bolster the upward trend even more.

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