Nifty has retraced quite a lot after falling due to pandemic . It has very high chances to correct and consolidate as the economy and the stock market can't show such divergence for long
question is - when will it start correcting and what happens next
possible scenarios
- FII has been buying like anything last week, US markets all-time high, so it looks like NIFTY also has some amount of steam still left. This leads to a hypothesis that it will continue its bull run for next few days more and try to touch 11800-12000 zone without taking a breather
- other option may be Nifty takes a breather next week and corrects slightly and then continue its bull run till it enters the Possible reversal zone mentioned in the charts
option chain for 3rd Sept expiry shows 11500 as support and 12000 as resistance - range. there were quite a heavy OI changes at 11600 levels - put OI increased 1.3 M and call OI decreased by 160k that's tells 11600 can be taken as good support
US S&P 500 index Climbs Fifth Straight Week - anecdotally , usually after 3rd / 5th week a correction is due - so may take would be on the negative side for next week but for intraday only. the positional shorts can be taken from the PRZ zone