We might see a buying opportunity ahead in the index. There is a V Shape Breakout expected if the index closes above 6800. As per studies V Shape breakout failure rates are moderate. False Breakout can be seen, so maintaining a strict SL is advised. SL for the index if it closes above the mentioned level would be 6740.

The Index is trading above the 50 day EMA and a trend of the EMA is Positive. We expect the move to continue ahead and buying pressure coming in the index if it closes above the mentioned level.

The RSI is not showing any divergence till now and we expect the same ahead, if any divergence are seen before the breakout we will suggest not to enter the trade.

FR40

Oct 27 2021