NIFTY Flag Breakout Hints Continuation

Indian markets have started a longer term Bull Run that is likely to remain continue for 2-3 years. NIFTY spot opened with a small gap on Tuesday and closed with positive note. Prices has climbed above resistance line of a flag consolidation and hinting more upside. A hidden bullish divergence is clearly visible on stochastic that is also sporting factor for bulls. We have drawn a dashed trend line by connecting May 30^th low 7118.45 and June 27^th Low at 7482.30 that is expected to provide a good support in coming days. Areas of 7531 and 7480 are likely to remain strong support as these areas are supported 10 days SMA and rising trend line. Resistance is now placed at 7665 and then at 7700 decisive closing above 7700 would call for a rally towards 7900-8200.

Recommendation: Staying long or buying Nifty around 7600-7580 with stop loss below 7480 for targeting 7900-8200 and more upside might be appropriate in coming days.

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#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...

LET THE MARKET TELL WHO WE ARE

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