The daily and hourly momentum indicators provide divergent signals and in such a scenario a consolidation appears with high probability. Contraction of the Bollinger bands also supports our sideways outlook on the Index. The range of consolidation is likely to be 19,500 – 20,100 from a short-term perspective.
The inability of bulls to witness any sustainable upside bounce from here could eventually result in a decisive downside breakout of the present range movement
Although selling pressure emerged from near 20,100 levels, there is no confirmation of any top reversal pattern forming at the new highs. But, a decisive up move above the 20,100-20,150 level is expected to bring more upside towards 20,350-20,450 levels in the near term. Immediate support is placed at 19,950 levels, said Nagaraj Shetti of HDFC Securities.