Nifty makes a bearish candle signifying profit booking in near term while long lower shadow validates bulls at lower end. For past few weeks broader range for Nifty has been 8490- 8780 levels while today it sustained the 8600 level on closing basis as bulls enter the market at lower levels to trade the range. Nifty is in intermediate consolidation with buy on dips strategy as we continue to make higher top and bottoms in primary coupled with intermediate trend.

The 20 Day SMA and 50 Day SMA are still below the closing signifying the short term and intermediate term trend to be positive while above 200 it shows overall bullish structure. For Now Nifty has resistance at 8710 – 8780 on higher side while support is at 8590 – 8540. We suggest buy on dips to be favorable in coming sessions. if it sustains the lower level then we can retest 8710  -8780 and beyond that 8840 on closing basis. As Per OI data, The broader range is still intact between 8800 – 8500 as per highest open interest concentration. Buying is seen in 8500 – 8700 CE as well suggesting bullish view. Metals and PSU banks will be on rader as buy on dips strategy and in coming sessions we may see bank nifty leading the rally.