The index registered a higher high and higher low but failed to sustain its gains and closed well below its high. Intra-day market movement has formed a Spinning Top, which is indicative of nervousness among participants at current levels.

In order to gain more strength bulls could potentially retreat towards 44,484 – 44,333 and then likely re-attempt penetrating the immediate supply zone, which defined in b/w 44,615 – 44,756.

Additionally, in another scenario, market may open on a strong note with expanding volumes and continue to rally until the supply glut is absorbed at the aforementioned level.

We believe the bullish scenario remains intact and strong move above 44,756 will further strengthen the bulls and next target would be 44,846 – 44,940 & later on 45,040 – 45,150 would be on cards.

Courtesy – AHL Technical