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The index witnessed a perfect pullback within the ongoing bearish trend. The anticipated hurdle around 22320 acted well as a supply zone as selling pressure intensified once the index broke the 22200 level. The immediate anticipated support zone around 21800 (Weekly Channel Support) followed by 21766 (20 WEMA) would be important going forward to gauge further weakness. Both trend strength indicators are complimenting the bearish move to continue further as the ADX is trending higher confidently above its 30 level while RSI is yet to hit its oversold zone. Given that the index is likely to revisit its weekly channel pattern support base at 21800, it is best to exercise caution when pursuing any pullback moves or to discontinue the buy on declines strategy until a reversal formation is evident on its weekly scale. For the day in case the index starts the day itself around 21766 it is likely to witness an exhaustion formation around 21600 itself which may result into a meaning full pullback within the bearish trend.

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