Below was our analysis for this expiry:
|Monthly||Bullish||Bullish||60 (Neutral to Overbought)||16800||15500|
|Weekly||Bearish||Bullish||51 (Neutral)||R1 -16800
|S1 – 16150
S2 – 15850
|Daily||Bullish||Neutral||70 (Overbought)||R1 -16800
|S1 – 16500
S2 – 16350
This week’s Verdict
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)
In line to our analysis, Nifty fell from the resistance zone of 16800 where RSI was at overbought zone of 70 on a daily timeframe.
Nifty gained support at 16450-500 level. Your strangle must have give you good returns this week.
Support & Resistance for today’s expiry .
Support : 16500
Resistance : 16750
Charts references :
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