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Nifty

‘Spinning Top’ formation within the ongoing consolidation range is a sign of pause & not a reversal. The index has retaineditself above its 5 & 20 DEMA support levels which are placed at 22580-22600. The zone would be important support for thedaywhileupside remains capped around 23000-23100. The ongoing instability looks subsided as the event volatility cools downcompletelybelow 18 levels on India VIX. Option data too indicates 23000 to remain a stiff resistance while support seems shiftinghighertowards 22500 followed by 21000 (monthly basis). Traders may resume their business as usual & focus on stock specificactionwhile deploying longs & utilize intraday declines to add longs rather than chasing breakout moves. While investors shouldstartlooking for fresh emerging pockets of strength from here on until the index completes its time correction / consolidation.

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