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NIFTY

Profit booking was witnessed near the anticipated breakaway zone of 25065 as the Index again formed a narrow-ranged candlestick formation indicating lack of conviction near life high zone. The index is maintaining its low above its 5 DEMA support level of 24873 which continues to remain a demand zone. The unfolding impulse wave does display the wave extension target zone around 25475 for this series. A fresh breakout on the ADX indicator above the 25 level compliments the ongoing trend strength to continue as the index would gather further momentum once above 25065 level to rally towards 25475 (the rounded bottom pattern target) as per its daily scale setup. The August series' options base has shifted higher from 24000 towards 24500, and the upside potential stretches towards 25500. With the event volatility subsided & the India VIX descending towards 10 would ensure stability in the coming sessions as the base could rise towards 24700 for the upcoming week. The current major base stands at 24530 (20 DEMA Support) which coincides with options data. 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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