Let’s start this expiry outlook with analysis of: Monthly, Weekly, And Daily time-frames.
Nifty CMP: 17,158
|Monthly||Bullish||Bullish||63 (Neutral to Overbought)||18000||15500|
|Weekly||Bearish||Bullish||56 (Neutral)||R1 -17365
|S1 – 16500
S2 – 16000
|Daily||Bullish||Bullish||73 (Overbought)||R1 -17365
|S1 – 16800
S2 – 16600
Chart analysis indicates Nifty is in Bullish trend. However in weekly timeframe it is still under negative super-trend level which indicates Bearish view. But looking at the candles on daily timeframe it can be said that on a weekly timeframe too, Nifty will come to positive trend.
Outlook is Bullish, based on the strength of daily candles and positive cues from global markets & events.
But on a cautionary note, RSI on Daily time-frame indicates that market is in overbought zone. But as RSI in Weekly timeframe is near neutral which gives it more scope to trend in upward direction.
However, in coming one-two trading sessions Nifty may consolidate, and Daily RSI level cools-off from 73 to 60 levels as market may not stretch much from these RSI levels at daily time-frame..
17350-17400 zone will act as major resistance zone in coming days.
- This week, in initial trading sessions, Nifty may be in consolidation mode. You can trade Strangle with 17600 & 16600 strikes.
- Long , if Nifty consolidates and daily RSI cools off upto 60 & Nifty take support at 16800 levels. (Buy Calls, Sell Puts), however for this expiry, one can sell OTM put options with strike 16300, 16400,16500 strikes with proper risk management.
- Short, if Nifty breaks 16600-16800 level with intense selling. (Buy Puts, Sell Calls)
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