Skip to main content

So Time for a Dead Cat Bounce?


Nifty index settled at 7801.05 yesterday. Index reversed sharply after hitting a low of 7511.10 and formed an indecisive candle which managed to hold Monday’s low on closing basis. Price action witnessed on Tuesday showing indecision along with increased volatility. Increased volatility along with indecisive candle which is protecting previous low closing basis suggests tough war between bulls and bears and closing above previous close suggests bulls are wining against bears. In today’s session 7740 will remain crucial support for Nifty spot. Failure of this level might attract fresh selling for the day and then attempt towards 7650-7550 could be imminent. Key support will be at 7500 and stability below this level will open the doors for attempt towards 7350-7200 and more down side. Stability above 7740 will keep chances for a recovery and any cross and stability above 8000 will result in a rally towards 8400-8700. This index might try filling of gap left at 8744 on Monday. Overall market trend remains bearish but a short term bottom can be expected at 7500 and market might remain within a range 7500 and 9700 in coming days.

Comments

Popular posts from this blog

First step towards becoming Financial Independent...

  Success is not getting a highest paying job but success is when you get enough free time for yourself you can do whatever you want you can go wherever you want to go without concerning about your job and effecting your lifestyle.  Generally people waste their early age in preparing for govt. Jobs and they put their energy and time for preparing job but among those only few people get the govt. Jobs and rest stay jobless with wasted time of 3 to 5 years of their graduation and mostly spend their life jobless or with mediocre salary.   In India people In their early age after graduation don't have much pressure from family for earning and they usually use this time to prepare for competitive exams  for job and take some courses and among them only few people get job and rest remains jobless and then they keep blaming the system for their unemployment.  Let's take an example to understand magic of starting earning and saving in early age.  Because in ea...

Will Exhaustion Gap Halt the Down Trend in Nifty?

In this video we have explained what NIFTY is likely to do in next few sessions. 

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...