Nifty Review & Analysis - DailyPrice Action :
Nifty saw selloff from the opening and saw buying at 23500 levels to bounce back and close flat at previous day’s close. As discussed last session Nifty saw some buying around 23500 levels where there were Put writers.
Technicals:
Nifty 50 has formed a Hammer sort of candlestick pattern on the daily charts with above-average volumes, while defending the previous low of 23460. The index closed near the previous day’s close, trading below the 10, 20, 50, and 200-day EMAs. The momentum indicators, RSI (Relative Strength Index at 43), remain in the lower band, and MACD (Moving Average Convergence Divergence) remains below the zero line, indicating weakness.
Support/Resistance
Major Support 23450-500
Immediate Support 23600
Immediate Resistance 23750
Major Resistance 23850-23900
Trend:
Nifty was Negative to sideways
Options Data:
23500-600 saw Put writing and 23700 saw Call addition suggesting Nifty in a 100-150 point range.
PCR improved to 0.7
Futures Data:
FII Long/Short ratio was at 19%/81%
Nifty Futures closed flat with addition in Open Interest suggesting slight Long addition bullish bias in immediate short term.
Outlook for Next Session:
overall Nifty is Bearish. If buying has emerged at 23500 levels and sustained above 23720 might atempt to test 23850 levels
Approch:
Wait and watch with no positions.
Wait for today’s High to be taken out and trade above that for 3omins to go long for tgt 23850+
If opened Flat wait for a test of 23650 to see buying and go long above 23720
If opened gap-up, which is very unlikely wait for pull back to go long for small profits
if opened gau-down, wait for break below 23500 clearly to go short.
My Trades & Positions:
holding long positions in 23500CE Jan monthly expiry around 23540 levels