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Nifty

The occurrence of yet another "Spinning Top" pattern formation indicates uncertainty to continue. Although it showed signs of resilience, it was unable to close above its 20 DEMA level of 24400. The range of the current price action has narrowed to 24400-24200, suggesting that a breakthrough which will help the index to come out from its current broad 24445-23840 range. Both its trend strength indicators remain weak with its daily RSI hovering around 50, while the ADX has been rising around 32, as both trend strength indicators are steering with the price action. With no major price reversal formations on its larger degree timeframes yet there is a good possibility of a ranged bound oscillated move within the wider range of 23840-24450 zone throughout the week. The current major base stands around 23840 (5 MEMA Support) which coincides with options base around 24000 followed by 23800 which still remains an ideal zone for buying. Momentum investors need to keep adding long positions until the weekly closing basis level of 23990 holds, and traders can retain some long short positions until the index rests within this broad range of 23840-24455

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