IGI Logo

Nifty

It’s time to exercise caution as Nifty registered another narrow ranged formation after a consecutive 3rd upward gap. ‘BreakawayGap’at 16560 breaking the 200 DEMA level followed by a ‘Run Away Gap’ at 16774 ahead of the July monthly expiry sawyet another GAPonthe final day of the JULY month primarily looks like an ‘Exhaustion GAP’ & hence a reversal sign would be awaited to reversethetrade.The sequence needs a confirmatory move below its Exhaustion Gap support to confirm the swing top. This sequence of GAPs conveysanend of a primary move as ‘Break Away Gap’ primarily occurs at the completion of a pattern while ‘Exhaustion Gap’ usually occursattheend of a trend or at an important support or resistance level. This set of Gap sequence ahead of the key RBI policy event couldbeasignof caution & hence a trailing stop strategy should be adhered strictly while carrying forward any trading longs. Trend strengthindicatorRSI at 77 has hit its overbought zone but there is no sign of any divergence in strength while ADX is still in a upward trendingmodeat38.Hence, it’s too early to decide on a probable top & hence a confirmation on the reversal side would be awaited. It’s ideal toremaincautious & advisable to deploy a sizeable hedge against your longs. While booking profits where ever necessary post suchavertical run-up too remains a prudent strategy as the nifty inches closer towards its expected resistance zone around 17480 for this series.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.tradebulls.in/disclaimer
SEBI Registration number is INZ000171838 

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