Nifty closed with 0.59% in today's session. As per nifty Relative Strength Indicator (RSI), was placed in oversold zone since three days however recent price pattern on nifty daily chart has indicated trend reversal in near term and strong base near 5700 and, stock may give more rise from here in near future. Nifty is in short term down trend until it is below 5850. A good Bullish engulfing Candlestick pattern was formed on NIFTY EOD chart in yesterday's session Prior to pattern formation this Index was in downtrend. As per slow stochastic , NIFTY was in over sold range also with MACD downside cross signal. Nifty is in consecutive downtrend since five weeks.
Nifty 5700 put added 1,186,550 fresh contracts in open interest which take this strike at highest open interest at 9,521,300 on the put side. While nifty 5700 call has 2,662,500 contracts decreasing with 274,150 fresh contracts in today's session. Nifty 5800 put added highest1,454,600 fresh contracts in open interest today. As nifty was up by 35 points and open interest added in 5700 and 5800 put indicating strong trend reversal fron lower side after continuing down trend. Put call ratio has improved from 0.94 to 1 level indicating that price may go more higher in further direction.
FIIs bought index future worth Rs.191 cores and open interest increased by 12937 contracts indicating that FIIs have started fresh long entry after long period.They have covered their short in yesterday's session also, but there was no any indication of fresh buy in today's session.
As I have given you indication That nifty may rise in further direction and it has taken resistance exact at my projected level near 5830. Nifty was in strong down trend on both daily and weekly chart. As per recent price pattern It has given one of the fastest rise in yesterday's session. 5700 put open interest reached at 95 lakh just after four days of new series indicating that 5700 level has formed as a strong base on the down side. As per Today's session nifty has given bullish jump in todays session also but reached at very crucial level So tomorrow session will be very important for nifty for next move in either direction. Today's session high and low will be crucial level for tomorrow to watch, Either side break with follow up buying or selling will indicate a clear direction. If nifty break towards upside then we will see a fast rally upto 5960 and if we break today's low range then we may see a fast fall of 200 points towards downside. However nifty has shown very strong breakout on hourly chart and it has taken resistance at higher channel. If break this channel nifty will give further more spike from this zone. Nifty has formed a double top formation around 5970 in this down wave may create strong obstacle at higher level. Trend is now buy on dip mode in short term point of view. Untill unless nifty cross 5970 bulls can not come in full confidence.
As I have given you indication That nifty may rise in further direction and it has taken resistance exact at my projected level near 5830. Nifty was in strong down trend on both daily and weekly chart. As per recent price pattern It has given one of the fastest rise in yesterday's session. 5700 put open interest reached at 95 lakh just after four days of new series indicating that 5700 level has formed as a strong base on the down side. As per Today's session nifty has given bullish jump in todays session also but reached at very crucial level So tomorrow session will be very important for nifty for next move in either direction. Today's session high and low will be crucial level for tomorrow to watch, Either side break with follow up buying or selling will indicate a clear direction. If nifty break towards upside then we will see a fast rally upto 5960 and if we break today's low range then we may see a fast fall of 200 points towards downside. However nifty has shown very strong breakout on hourly chart and it has taken resistance at higher channel. If break this channel nifty will give further more spike from this zone. Nifty has formed a double top formation around 5970 in this down wave may create strong obstacle at higher level. Trend is now buy on dip mode in short term point of view. Untill unless nifty cross 5970 bulls can not come in full confidence.
Short term stoploss for long trade at 5785 spot price
Target expected - 5850 and if broken than 5970.
Target expected - 5850 and if broken than 5970.
If stoploss hit reverse your position towards short side with stop loss coming at 5830
