The market completely reversed in the last hour at the lower end of the trend channel signaling there can be further retracement that can be expected in the coming days pushing the index higher. However, the near-term trend remains bearish. The DIIs have been selling consecutively everyday and might be looking to buy again at lower levels. So the correction might not be over just yet. 21000 will act as a deciding level in that regard.
On the upside, a gap-up opening will lead the Stochastics to an overbought zone and the index might find resistance at 22900-22950. However, if it breaches and sustains above 22000 for the first half of the session, there could be testing of 22120-22250, ultimately concluding the correction.
On the downside, if the resistances mentioned above are strong, one can short for 21600, which should act as pivot point for the week. Below 21600, and a breach of 21500, will resume the correction with a test of 21400 first and then 21000 ultimately. In case the index breaches 21000, it might find support at 20900-20880 and bounce back above, else gates to 20000 will be opened.
Expecting the expiry range to be between 21000-22000.
On the upside, a gap-up opening will lead the Stochastics to an overbought zone and the index might find resistance at 22900-22950. However, if it breaches and sustains above 22000 for the first half of the session, there could be testing of 22120-22250, ultimately concluding the correction.
On the downside, if the resistances mentioned above are strong, one can short for 21600, which should act as pivot point for the week. Below 21600, and a breach of 21500, will resume the correction with a test of 21400 first and then 21000 ultimately. In case the index breaches 21000, it might find support at 20900-20880 and bounce back above, else gates to 20000 will be opened.
Expecting the expiry range to be between 21000-22000.