On Friday nifty opened near 61.8% retracement level of the fall from 5400 to 5202 sold off from that level to 5256 and this move was expected. Now, I'm putting my trade plan for next week by analysing movement of nifty.
CHART - 1 (WEEKLY)
CHART - 2 (DAILY)
Bullish view: Option data shows short covering of 5300 call and short building at 5300 put, suggesting bullishness. Also RSI (14 d) is still not overbought, MACD & Stochastic have not yet suggested short. So, Nifty has potential to upmove. Besides 5330 there are many other levels like 5400 (previous high), 5450 (long term trend-line), 5470 (5 wk SMA) where nifty can get resisted.
Bullish Trade: Buy above 5300 with SL of 5280 for target of 5330, 5360, 5400, 5450
Bearish view: On weekly chart Inside Day formation with long tail is visible which signals reversal. RSI (5 wk) is in overbought zone, Stochastic is about to give bearish signal . Also Indian economy along with global news are supporting bears.
Bearish Trade: Sell Nifty below 5258 with SL at 5295 for target of 5225, 5200, 5175, 5140
Overall Impression: As per daily chart Nifty is in buying mode. Any dip upto 5260 can be used to buy. Positional short can be taken between 5380 to 5400. More shorts can be added near 5450. SL for this trade should be 5480, target - as per bearish trade (mentioned above).
N.B: All levels are as per spot basis. Please read the disclaimer before taking any trading decision as per above discussion.
CHART - 1 (WEEKLY)
Bullish view: Option data shows short covering of 5300 call and short building at 5300 put, suggesting bullishness. Also RSI (14 d) is still not overbought, MACD & Stochastic have not yet suggested short. So, Nifty has potential to upmove. Besides 5330 there are many other levels like 5400 (previous high), 5450 (long term trend-line), 5470 (5 wk SMA) where nifty can get resisted.
Bullish Trade: Buy above 5300 with SL of 5280 for target of 5330, 5360, 5400, 5450
Bearish view: On weekly chart Inside Day formation with long tail is visible which signals reversal. RSI (5 wk) is in overbought zone, Stochastic is about to give bearish signal . Also Indian economy along with global news are supporting bears.
Bearish Trade: Sell Nifty below 5258 with SL at 5295 for target of 5225, 5200, 5175, 5140
Overall Impression: As per daily chart Nifty is in buying mode. Any dip upto 5260 can be used to buy. Positional short can be taken between 5380 to 5400. More shorts can be added near 5450. SL for this trade should be 5480, target - as per bearish trade (mentioned above).
N.B: All levels are as per spot basis. Please read the disclaimer before taking any trading decision as per above discussion.
in simple words......its in trading range :]
ReplyDeleteDear Shreyo,
ReplyDeleteGood thinking, as I am saying for the last 1 week of 2 ranges, the smaller at 5200-5300 approx and the larger at 5100-5400, till then enjoy both side movement, so that option writers reap the benefit.
Dear SreyO!
ReplyDeleteGood work, i m really happy. Thank you so much for informing me thru mail either i never know ur such good work. keep it up:)
Rgrds,
Kumar