IGI Logo

Nifty

On the daily scale the index slipped below ‘Inverse Hammer’ formation as it faced resistance near its upper endof 17050mark which was expected to serve as a resistance. Trend strength indicators; RSI falling towards its oversoldzonealongwithADX at 33 is a diverging sign & hence its ideal to remain cautious ahead of the RBI Monetary policy. As per theprovisionaldata Rollover for Nifty was about 78% from September series to the October series as against their three-monthaverageof79%.

The rollover in Bank Nifty futures to October was around 82% as against the three-month average of 84.3%.Theslightlylower build-up in October contracts so far could be on account of indecisiveness ahead of the Reserve Bank of India'spolicymeeting on Friday.With the occurrence of an Inverse hammer formation after a decline of almost 5 straight sessionsaroundthe critical support of its 200 DEMA zone needs a confirmatory close above 17050 or yet another reversal patternformationfor forming confident longs. Until then It’s ideal to remain cautious, reduce trading positions & deploy a hedge-basedapproach until a meaningful price & time correction is concluded during the upcoming week

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