NIFTY: Three Bar Pullback Setup Hints Continuation in Current Uptrend

Nifty has been trading in a down sloping parallel channel and selling pressure occurred near the upper line of this channel. Once again nifty is showing some strength after completing 3 bar pullback on daily chart. 20 days EMA is providing good support to bulls and now nifty is trading above its 5 days EMA that stands near 8396. Stability above 5 days EMA indicates strengthening bullish momentum. MACD has climbed above center line and now it is testing its signal line from above. MACD reading above zero line remains supportive for nifty bulls. Based on 3 bar pullback setup today nifty has triggered a buy trade by crossing Friday’s high and suggests continuation in on going uptrend. Areas of 8390 and 8340 will remain crucial to watch out. 2 or more close below 8340 zones will hurt this bullish setup. Resistance is now seen near 8560 and then at 8800 zones. Currently trading at 8432.

Recommendation: Fresh entry can be taken on declines near 8400-8370 with stop loss below 8300 for targeting 8530-8700-8800 and more upside in short term.

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Will Exhaustion Gap Halt the Down Trend in Nifty?

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Nifty Options Weekly Expiry; MAX PAIN stands at 13400

#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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