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Nifty

Occurrence of yet another ‘Doji /Spinning Top’ formation near the upper end of the range warrants caution. But the ongoing trend strength may continue until the index trends above its 5DEMA support level which is placed around 21970. Both its trend strength indicators remain diverging with RSI trending higher around its 62 while ADX is yet to cross its 20 level. Their respective placement indicates lack of conviction in directional strength as of now. Option data highlights an immediate strong support zone at 22000 below which the range support is placed at 21800 while on the upside 22100-22200 itself has witnessed confident call writing action which stands as a cluster resistance. The data now indicates outer major wings placed at 22400 & 21800 itself for the final week of the series. With no sign of any change in directional play on its weekly scale; it is better to expect the ongoing oscillation to continue within the immediate range of 22140 to 21800 for the week. Outlook remains cautious until the index oscillates within this ongoing broad range with multiple resistance clusters around 22000-22140 level while key support zone is now placed at 21800 below which the major trend support stands at 21540 itself.

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