As expected, the index took support at the lower end of the trend channel and retraced back, albeit a tad bit more than was expected. The index might very well continue with the momentum but 22250 should serve as a strong resistance, given 2 weeks' EMA too stands at that level. Today's one way rally, after the initial selloff in the first hour, might've been due to retailers rolling over their short positions since there was minimal buying by FIIs and the overall trend seems to be bearish still.
On the upside, the market might try to test 22250, a smooth breach of which will lead the index to 22400-22480. The index could quite possibly just consolidate at these levels throughout the day to hog on options premiums.
On the downside, 22040 will act as a pivot. A gap down would be used to test 22000-21900 but there are high chances of the dip being bought. If the index manages to sustain above 22000 after a gap down, one can look at going long for 22250-22400. Below 21900, the market should take support at 21800.
The expiry range has now shifted to 21500 - 22500 range.
On the upside, the market might try to test 22250, a smooth breach of which will lead the index to 22400-22480. The index could quite possibly just consolidate at these levels throughout the day to hog on options premiums.
On the downside, 22040 will act as a pivot. A gap down would be used to test 22000-21900 but there are high chances of the dip being bought. If the index manages to sustain above 22000 after a gap down, one can look at going long for 22250-22400. Below 21900, the market should take support at 21800.
The expiry range has now shifted to 21500 - 22500 range.