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Nifty

After trending above it for 14 sessions in a row the Nifty index registered a close below its 5 DEMA support level of 22830. The gap area at 22915 now serves as a key resistance zone for the day while the 20 DEMA area near 22630 remains a crucial support for today. Options data indicates 22500 as a strong put writing zone while 22800 holds as strong hurdle with confident call writing witnessed even in yesterday’s session. But the OI-PCR is placed at 0.65; which serves as an extreme oversold territory; ripe for a pullback. Even both its trend strength indicators are trending higher with ADX around its 30 level; strong sign of conviction & further momentum. A hint of instability might be seen as the election results get closer which could increase market volatility. Traders may continue to exercise caution & refrain from building leverage positions until the event volatility cools down. Traders are advised to remain selective while deploying longs & utilize intraday declines to add longs rather than chasing breakout moves. For the day expect volatility to have an upper hand as a rebound back towards the upper end of the immediate range around 22830 could be likely with support base around 22630-22500

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