Potential Bearish Crab pattern has appeared on weekly chart of NIFTY which completes at 2.24% Fibonacci extension of Leg BC at 6762. If wave CD extends then this rally may remain continue to 3.618 Fibonacci extension of Leg BC which is around 7988. Overall picture is still bullish as per this harmonic analysis and areas of 6111.80 and 6360 are very stiff hurdles for NIFTY. In near term stability above 6111.80 would confirm an attempt to 6300-6350 zones. Sustained rebound above 6360 would confirm a primary rally towards first expected reversal level to 6762 or in case of extension of this rally then next bearish reversal point on broader picture would be 7988. Areas of 5477 has become very strong support on longer term picture which are supported by horizontal support and rising trend line any failure of these levels may hurt our longer term bullish outlook on NIFTY and then corrective rally may take it to 4500 zones.
#NIFTY #INDEX currently trading at 13438, down by 90 from previous close. Today index has opened gap down and taken out the low placed yesterday at 13449 triggering primary weakness in market for the day. Immediate support is now placed at 13390, retest to this level can’t be ruled out but stability below 13390 will result in to further weakness and then attempt towards 13350-13310 zones can’t be ruled out. Key support will be at 13300 and further stability below that level will bring more weakness. Resistance is now placed at day high which stands at 13488, any sustained move (Less likely) above that level will bring some relief to bulls and then attempt towards 13540-13590 can be seen. On #option_chain heavy #call_writing is being done at 13500-13600 strikes where as short covering is visible in 13450 and 13500 puts whereas longs build up seen in 13400 puts with high volume. Based on current #OI position level of #option_pain stands at 13400 thus based on current data at 10:52AM...
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