NIFTY - BARISH IN BULLS CAMP

Mar 23, 2022

Nifty the fall lacked marginal depth below 17000 and instead bulls pounced back taking support from the 200 DMA. Conditions also aided with global equity stronger rally, marginal fall in crude (does it really matter now?). What confounds is despite the rise in US yields, inflation worries, FED Chief Hawkish confirmation equity continues to march ahead. There are multiple explanations that can be put forward to justify the move. For now the fact remains Many Indexes are closer to 200 DMA or tad above that. That should be respected. Alternatively, a side show before the next leg down. The bearish engulfing pattern failure can be seen strictly from the bounce of from the 200 DMA. As we see it the other indexes also would chip in to support the nifty. Optically 17500 is one supply zone and the last defense for the bears is 17800 if that goes all goes. For the day longs favour but the entry is tough ask. Suffice to say 17350-17550 range with bias to buy dips. Stops 17265.