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Nifty

Nifty witnessed selling pressure throughout the week & closed below the ongoing channel pattern support level of 22140. Thelevelalso coincides with the convergence zone of its 5 & 20 DEMA indicating further weakness. On the daily scale it has formedan‘InsideBar’ candlestick price pattern with confirmation support at 21900 below which further acceleration in downward momentumcouldbe expected. Both its trend strength indicators are complimenting with the unfolding price action; with RSI breaking belowits50levelwhile ADX is trending upwards towards its 25 zone. Options data indicates key resistance zone at 22200 followed by 22500itself whilesupport base is firm at 21500. Weekly closing below 5 WEMA support of 22150 has confirmed further weakness whichcouldpushtheindex lower towards 21800-21500 zone in the coming sessions. With the short-term support base for the week being breacheditsideal to refrain from building positional longs until there is a firm reversal pattern formation on its weekly scale or whentheindexclearly surpasses the resistance zone above 22400.

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