The Nifty took U-turn after touching its strong resistance placed around 9,200 levels earlier this week. We have seen long positions being liquidated at a higher level, which signifies traders need to be cautious at this time.
The Nifty50 registered an inverted hammer candle kind of formation on Tuesday and a Hammer like pattern on Wednesday suggesting bear are having control at the moment. The Nifty continued its losing streak for the fourth consecutive session and trading out of its rising channel pattern.
Overall data indicate that on downside 9000PE having highest open interest suggesting strong support and the upside 9200CE having highest open interest showing strong resistance.
The Nifty also closed a day below 9,140 levels which is again a negative factor for the index. If the index is able to sustain below 9140 levels index, it will drag the markets towards 9020-9000 levels in coming sessions.
Overall, we expect Nifty to trade in a range of 9000-9275 zone and we recommend 'buy on dip' and 'sell on rise' strategy to be used for an ongoing week.
The Nifty50 registered an inverted hammer candle kind of formation on Tuesday and a Hammer like pattern on Wednesday suggesting bear are having control at the moment. The Nifty continued its losing streak for the fourth consecutive session and trading out of its rising channel pattern.
Overall data indicate that on downside 9000PE having highest open interest suggesting strong support and the upside 9200CE having highest open interest showing strong resistance.
The Nifty also closed a day below 9,140 levels which is again a negative factor for the index. If the index is able to sustain below 9140 levels index, it will drag the markets towards 9020-9000 levels in coming sessions.
Overall, we expect Nifty to trade in a range of 9000-9275 zone and we recommend 'buy on dip' and 'sell on rise' strategy to be used for an ongoing week.
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