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Nifty

Nifty slipped below the crucial 21530 level & also closed the day below the same for the first time but it did stabilise & formed a ‘Spinning Top’ formation. The spinning top candlestick indicates a clear rage at 21550-21280 outside which a decisive momentum play could be expected. The latest GAP at 21850-21950 zone now becomes a significant resistance zone for the rest of the series while support cluster on a weekly basis remains around 21300 & 21000. Options data indicates a wider range of 21800-21000 for the rest of the series. A sustained weekly close or a consecutive closing on its daily basis below 21530 would mark the failure of the recent up move which would lead to further price correction. Short covering move could be lethal incase the index immediately swings above the 21600-cluster zone which could push the index higher towards 21800. It is ideal for traders to deploy level-based trades only until the price action confirms further signs of stability. For the day expect oscillating moves within the broad range of 21600-21300 with regular bouts of volatility which will present either side trading opportunities.

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