Nifty managed to regain itself above its critical support area around 10,800. The recovery was led by strong price action in selective heavy weight stocks especially from the financial & metal sectors. On the daily scale, sustenance above 10,920 is a must to regain its strength & negate the Bearish Belt Hold formation which occurred at the beginning of the week; hence the index could remain vulnerable towards global cues in the coming days.
A move above 10,970 would negate the Bearish Belt Hold formation & hence remains an ideal stop for revival of bullish momentum. Revival above 10,970 is a must for the bias to retain in the positive territory while a breach below 10,760 could extend the fall towards 10,680. Traders to remain cautious within this crucial zone & avoid adding aggressive positions on either side until the index trades within 10,760-10,970.
Bullish structure on the weekly scale remains intact since February 2019; BEL has been bucking the trend & has been respecting its 200 DEMA well. The recent rebound from its 200 DEMA placed around 99 & a breakout above the clustering zone of 104 augurs well for the bullishness to persist further. The breakout has been coupled with strong volumes as the Highest CE OI concentration shifted rapidly from the Rs 105 to Rs 110. Expect momentum to continue towards Rs 115 cluster zone & hence positional longs could still be added with a stop below 100.