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Nifty

Nifty closed the session above its 5 DEMA level of 25030 which is a good sign of incremental strength. Index has been undergoing a brief phase of correction to consolidation as it slipped back towards its 20 DEMA support level of 24900 which also coincides with its 5 WEMA support placed around 24830. Options data for the week indicates an immediate range of 25000-24800 itself with major wings at 25300-24500 itself. The index is witnessing a brief phase of correction after a strong runup from 24000 base. Since the index registered a close below the 25080 level it is advice to trim down momentum long positions & wait for a reversal signal to redeploy longs. On its daily scale the index has so far retraced 38.2% of its prior bullish wave which is significant as well given the placement of its 20 DEMA support near the same. But its 50% Fibonacci retracement support is placed at 24570 which could emerge as a strong demand zone for buying. Momentum traders should wait & watch for reversal signal near these critical junctures or on a breakout above 25300 itself to redeploy their longs.

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