Nifty (spot) is trading above 100-DMA for the first time since Oct 27. The 100-DMA level is now seen at 7613 levels.
Last break above 7613 seen on Oct 16 lasted only few days. A subsequent break below 100-DMA led to a sharp sell-off
Hence, bulls need to be cautious here. Daily RSI is fast approaching overbought zone. On 4-hr chart, Price-RSI could form a bearish divergence if the current candle closes lower
Nifty’s failure to sustain abv 100-DMA of 7613 would expose falling trend line support at 7540 levels.
A daily close below 7540 would mark another failure to sustain above 100-DMA and could trigger a sell-off to 7405-7252 levels.