The October series started with a bang for the benchmark index with a rally of almost 500 points which closed the index above its 100 – day exponential moving average on the daily interval.

On September 30, Nifty50 remained volatile throughout the day and formed a long leg Doji candlestick pattern and closed within the range of the previous day’s candle.

Currently, Nifty is trading in a very narrow range of 50 and 21-day EMA which is placed at 11,170 and 11,290, respectively, on a daily timeline.

Currently, Nifty is in the second leg of lower high lower low formation. The first up leg got sold near 61.80 percent retracement from its previous intermediate high of 11,794 to its intermediate low of 11,185.15 levels.

For two consecutive days, the index is capped under the 11,300 level which is also a 61.80 percent retracement of the immediate high of 11,618 to the immediate low of 10,790.20 levels.

In case the index slips below the upper band of the recent positive gap, which is placed near 11,080 levels, a near-term corrective move cannot be ruled out.