NIfty has given breakout on the downside from the consolidation zone and moved towards 17500, took support there and finished the week at 17600.
It is highly unlikely that downside is over and that it may open with a gap up scenario even if global cues are positive. A flat open is not tradeable as Nifty might move to upside or downside and no way of knowing what it might do.
Scenario 1: - NIfty opens gap up then it can possibly take resistance from 17730-17770 zone and continue its downward movement back to 17500. Highly unlikely to open large gap up tomorrow even if global cues are positive.
Scenario 2: - Highlighted circle is the breakout area for NIfty from which it embarked upon a massive rally. Nifty did not go till that particular level and hence there is a chance it might give a false break below the week's low and try to trap retail traders and then take support from 17420-17450 region and then give a huge move. This is possible in case of a gap down scenario and does not mean downside is over because it should fill the gap till 17320 but probably not tomorrow.
So a short maybe not initiated below 17493 but if 17400 breaks then for sure it will take support at the gap area of 17310-17340 region.
Happy Trading and Best of Luck!!
Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.
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