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Nifty

Profit booking was witnessed near the anticipated breakaway zone of 25065 as the Index slipped below its 5 DEMA support with a GAP; forming yet another narrow-ranged body candlestick formation. The frequent occurrence of such narrow bodies signifies lack of conviction amongst traders on higher side which validates likely consolidation in the coming week as well. The gap resistance at 24970 is the key pivotal mark above which the index could resume its bullish momentum while the 20 DEMA support is placed at 24560 which could act as immediate support base. With no major price reversal formations on its larger degree timeframes yet there is a good possibility of a ranged bound oscillated move within the 24970-24560 zone throughout the week. ADX indicator has still maintained its close above its 25 level which compliments the trend strength to resume once as the index scales above 25065 mark again to form a rally towards 25475 (the rounded bottom pattern target) as per its daily scale setup. The current major base stands around 24560 (20 DEMA Support) which coincides with options base around 25500 which still remains an ideal zone for buying. Momentum investors need to keep adding long positions until the weekly closing basis level of 23990 holds, and traders can now trail their stops higher below 24410 & utilize dips if any towards 24700 to add further longs.

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