The ongoing rally is expected to exhaust around 21040 - Tradebulls Securities
Nifty
Occurrence of the ‘Hanging Man’ formation after a sequence of narrow ranged bodies is a sign of loss of existing strength. Option data is indicating 21000 to remain a strong hurdle for the current series but the bearish implications would come into play once the index slips below 20710. The ongoing narrow ranged candlestick formations away from its 5 DEMA support zone of 20628 which is warranting caution for leverage longs. With its daily RSI at 84 & ADX now around 52 both the trend strength indicators have entered their caution zone & extreme optimism level. The ongoing rally is expected to exhaust around 21040 it is advised to reduce long positions going forward & remain light to renter at lower levels around 20300 (Gap Support). Aggressive shorts could be considered as well at this junction but leverage positions can be added once on confirmatory close below 20710.
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