IGI Logo

Nifty

An affirmative close above the 16000 level along with a close above the Doji formation is a good sign of stability amidst the volatile environment. Doji near the proximal support of its lower end of the ongoing channel would be critical for the week & a rebound could unlock once above 16060. Failure to sustain above the same could open up further trajectory towards 15850 immediately while pullback if any could find firm resistance around its 200 DEMA zone of 16720 followed by 17000. Options data indicates a range shifting higher towards 16000-16500 as of now for the week with PCR near 0.75 is nearly indicating an oversold state awaiting a pullback led by short squeeze. Both trend strength indicators warrant further weakness as RSI is yet to hit its oversold zone while ADX is getting stronger as it moves towards 40 mark. With the volatility index range still rising its ideal to delay investing prepositions by a few weeks until the storm settles down. Strategy for traders to remain cautious on pullbacks & continue to retain their mean reversion trading approach throughout the first few weeks of this series as the range shifts lower.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.tradebulls.in/Static/Disclaimer.aspx

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer