Nifty Prediction, 04 Aug 2022 Expiry – Followup

8 August 2022
2 mins read
"As stated in this week's prediction, Nifty faced resistance at 17400 level which was weekly supertrend level. Where will Nifty expire this week ? Find a major Support & Resistance level."
Nifty Prediction, 04 Aug 2022 Expiry – Followup

Below was our analysis for this expiry :

Chart Analysis

Nifty CMP : 17158

Time Frame Trend CandleStick RSI Resistance Support
Monthly Bullish Bullish 63 (Neutral to Overbought) 18000 15500
Weekly Bearish Bullish 56  (Neutral) R1 -17365

R2 -18000

S1 – 16500

S2 – 16000

Daily Bullish Bullish 73 (Overbought) R1 -17365

R2 -17600

S1 – 16800

S2 – 16600

This weeks Verdict :

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.

Trades Given :

  • This week, in initial trading sessions, Nifty may be in consolidation mode. You can trade Strangle with 17600 & 16600 strikes. – Won
  • 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.- Won
  • Short, if Nifty breaks 16600-16800 level with intense selling. (Buy Puts, Sell Calls) – NA

Follow-up

In line to our analysis, consolidated for first two trading session of this week on Monday & Tuesday.

Also, 17400 acting as resistance which was supertrend resistance level on a weekly timeframe.

Nifty facing ressitance at 17400 zone. Your strangle must have give you good returns this week. Also all the long entries of OTM Put options must have given good return.

Support & Resistance for today’s expiry .

Support : 17200

Resistance : 17500

Charts references :

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