Let’s start this expiry outlook with analysis of: Monthly, Weekly, Daily time-frames.
|Monthly||Bullish||Bullish||60 (Neutral to Overbought)||16800||15500|
|Weekly||Bearish||Bullish||51 (Neutral)||R1 -16800 R2 -17350||S1 – 16150 S2 – 15850|
|Daily||Bullish||Neutral||70 (Overbought)||R1 -16800 R2 -17000||S1 – 16500 S2 – 16350|
Chart analysis indicates that 16800-17000 level will act as important resistance zone, also RSI at daily and hourly time frame is at Over Boought zone suggests that in near-term Nifty may not go up with same pace. It may retrace upto the point when RSI cools-off to the level of 40.
So we may see Nifty retracing upto the level of 16350-16500 level in coming week. Upside seems limited in coming week.
- This week Nifty may be in consolidation mode. You can trade Strangle with 17000 & 16500 strikes.
- Long , if Nifty consolidates and RSI cools off upto 40-45 & Nifty take support at above support levels. (Buy Calls, Sell Puts).
- Short, if Nifty breaks 16300-16350 level with intense selling. (Buy Puts, Sell Calls).
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