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Nifty

For 4 th consecutive session 21900 proved as a worthy support for Nifty as it managed a closed above the same forming yet another ‘InsideBar’formation. But the negative crossover of 5 & 20 DEMA convergence zone around 22150 continues to indicate further weakness. On thedailyscaleyetanother ‘Inside Bar’ candlestick price pattern at 21900 looks critical & any slippages below would acceleration the downward momentum. Withbothitstrend strength indicators still complimenting with the unfolding price action; RSI trending below its 50 level while ADX is trending upwards towardsits25 zone. Options data too indicates key resistance zone at 22200 followed by 22300 itself while support base is firm at 21500. Weekly closingbelow5WEMA support of 22150 has confirmed weakness which could push the index lower towards 21800-21500 zone in the coming sessions. Withtheshort-term support base for the week being breached its ideal to refrain from building positional longs until there is a firm reversal patternformationonitsweekly scale or when the index clearly surpasses the resistance zone above 22400. Until then the trend would provide sell on rise opportunities

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