As we have been discussing in our last post, NIFTY's bullish momentum has performed as we discussed. Now, NIfty is facing resistance, as can be seen on the chart. It's still forming a higher High. But it is not able to make a higher LOW, which shows the weakness in the bullish trend. In the OI data, we can see that 21000 is showing huge resistance.
I am expecting a consolidation in the upcoming week in a range of 21000 as resistance 20880 1st support point and 20750 2nd support point.
Reasons:
Verdict:
The market either will go sideways or might correct itself till 20800.
Plan of action:
keep a neutral postion. Sell 21000 CE and protect it with a PUT buy.
I am expecting a consolidation in the upcoming week in a range of 21000 as resistance 20880 1st support point and 20750 2nd support point.
Reasons:
- RSI is 40-60, mostly sideways momentum. (sideways)
- Price > EMAs (Bullish)
- 21000 has a huge CE writing (66 Lakh CE) and (44 Lakh PE), which leads to PCR: 0.66, which is not a good sign for bulls.
- FII data also shows more bearishness.
- It has given a huge momentum required to have a consolidation.
Verdict:
The market either will go sideways or might correct itself till 20800.
Plan of action:
keep a neutral postion. Sell 21000 CE and protect it with a PUT buy.
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