Bulls tried to catchup with 200 Day SMA and also the support line of the up-sloping channel wherefrom Nifty broke down. This rise was on the basis of: a) short covering and b) Positive Divergence on RSI. But Rising Wedge played out. So despite morning exuberance of bulls on Wednesday, bears stood formidably on the way through the second part of the session. Moreover, bears grip on 11000 Call strike is very strong-- highest OI. Bulls are holding a small quantity of Puts at 10000 strike. Option Pains chart confirms bearish dominance. Big negative candle holds precariously above 5 DMA.
9949 is 100% retracement level.
If Rising Wedge pattern works in full steam, Nifty may slide fast below 10100 during the present expiry.
A temporary relief: Crude correcting for about 10 dollars from recent top and price may take support of 200 DMA again as it did 3 time in recent months.
9949 is 100% retracement level.
If Rising Wedge pattern works in full steam, Nifty may slide fast below 10100 during the present expiry.
A temporary relief: Crude correcting for about 10 dollars from recent top and price may take support of 200 DMA again as it did 3 time in recent months.