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Nifty

The latest occurrence of the ‘Dark Cloud Cover’ candlestick formation within the anticipated resistance zone is a sign of caution. Upside is expected to remaincappedaround 21900-21960 zone which concurs with the Island Gap formation, while major support ahead of the event now stands at 21100-20960 zone. Options dataindicatesfirm bounds at 21500-21900 for the rest of the week with fresh call writing around 21800 & 21900 strikes concurring with the limited upside expectations. Sincethetrendstrength indicators are still diverging its ideal to remain cautious & refrain for building any aggressive positions on either side until the range holds for the ongoingweek.We expect the index to remain oscillating within its broad range with resistance zone around 21700-21900 zone while key support zone is now placed at 21500followedby 21100. It’s best to stay nimble footed and avoid developing any leverage positions ahead of the forthcoming Budget session, which also includes the first weeklyexpirysession of the February series.

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