Trend bias looks positive

It's a Classic rangebound play we are witnessing in Index as it oscillates around 50 MA placed at 17,251. It was a dull start that indicated some minor profit booking but a stronghold of Reliance and Later Infosys kept the bulls on the strong foot as the rebound was seen from crucial supports mentioned previously. 17,000 – 17,050. The sharp rise accompanied volatility but also indicated the strong buying that is witnessed from lower levels and the bearish engulfing has been discarded.

The long Build-up OI is seen in Cap Goods, PSU Banks, OIL, and Bank Nifty stocks. Nifty also witnessed overall 4 per cent addition in Long in its components. The defensive play such as FMCG and Pharma continues to remain negative. As Per OI, Nifty can test 17,500 – 17,600 with downside support shifting to 17,100 – 17,150.

It is also important to see that advance-decline has been bullish with 8 sessions positive while only two negative sessions indicate the trend bias as positive as well. In tomorrow's session, It would be important to see how Nifty faces and clears the 17,350 – 17,340 mark.

(The author is Technical Analyst at Finvesify)