The index created a new high this week, failing to close above it. The small body candles are creating a value area at the highs, it’s very important for Nifty
to move above this value area to establish strength, the rally is fueled by small and mid caps, Nifty
should support this overall movement. While the RSI
is displaying divergence, the major momentum doesn't seems to be affected. MACD
above zero line with a minor divergence. A move above the value area 12400 shall push Nifty
to 12545 & 12930 levels (this is unchartered territory) 12170 levels will serve
as strong support to the index below which it can be dragged to 12000 levels, though 12170 is a very strong support.