NIFTY ON 03-08-2022
Moving against all odds NIFTY continued its northward journey during today’s trading session. The buying in heavyweights RELIANCE, INFOSYS and TCS pulled the Index towards 17400 and NIFTY made an intraday high of 17407.
IT emerged to be the leader with a gain of 1.35%. NIFTY closed at 17388.15 with a gain of 0.25%.
Technical View : (Daily Chart)
NIFTY has again made a spinning top kind of candle which generally indicates the trend reversal from current levels.
NIFTY is moving above EMA 13, 21, 34 and EMA 21< EMA34<EMA13 which can be interpreted as the short term trend is in the positive territory.
RSI is above 70 level (75.96) which indicates that NIFTY is still in overbought zone.
Support and Resistance : Daily Chart
17360 and 17240 will work as the support levels for NIFTY
On the upper side NIFTY will face resistance in the range of 17492 to 17542. .
View for Traders:
Today’s session is quite ambiguous to analyse as at one hand Global cues were not supportive and so was the Geopolitical condition which has risen due to US-China dispute over Taiwan where China has become quite aggressive. Further, the technical indicator and chart pattern was also indicating that NIFTY may take a dive today. On the other NIFTY is showing no indications of fatigue at all as it has successfully defended 17300 and closed near day high.
In such cases I prefer to use Fibonacci Retracement which has not disappointed me yet on positional basis. On daily charts it is showing that NIFTY may show the level of 17490.
Now if we take a look at Derivatives data we find that there are 90,00,000 OI on call side at 17400 and 17450 cumulatively. So if NIFTY crosses 17450 and sustains there are high chances that Index will show the level of 17500 on intraday basis.
However, despite all the bullishness , it is advisable to remain cautious at upper level as NIFTY is already in the overbought zone and a dip can be observed anytime.
Keeping the current scenario in view it is not recommended to buy NIFTY above 17300 levels. Hence, buying opportunity can be found near 17300 for a target of 17450 with a SL of 17225.
The sellers must take a chance in the range of 17450-500 with a SL of above 17550. The target will be 17350 and 17300. Once the target is achieved the trade could continue with Trailing Stop Loss.
INTRADAY PICK FOR TOMORROW:
1.INFOSYS
Buy in the range of 1575-1580
Target: 1630
SL 1549
Moving against all odds NIFTY continued its northward journey during today’s trading session. The buying in heavyweights RELIANCE, INFOSYS and TCS pulled the Index towards 17400 and NIFTY made an intraday high of 17407.
IT emerged to be the leader with a gain of 1.35%. NIFTY closed at 17388.15 with a gain of 0.25%.
Technical View : (Daily Chart)
NIFTY has again made a spinning top kind of candle which generally indicates the trend reversal from current levels.
NIFTY is moving above EMA 13, 21, 34 and EMA 21< EMA34<EMA13 which can be interpreted as the short term trend is in the positive territory.
RSI is above 70 level (75.96) which indicates that NIFTY is still in overbought zone.
Support and Resistance : Daily Chart
17360 and 17240 will work as the support levels for NIFTY
On the upper side NIFTY will face resistance in the range of 17492 to 17542. .
View for Traders:
Today’s session is quite ambiguous to analyse as at one hand Global cues were not supportive and so was the Geopolitical condition which has risen due to US-China dispute over Taiwan where China has become quite aggressive. Further, the technical indicator and chart pattern was also indicating that NIFTY may take a dive today. On the other NIFTY is showing no indications of fatigue at all as it has successfully defended 17300 and closed near day high.
In such cases I prefer to use Fibonacci Retracement which has not disappointed me yet on positional basis. On daily charts it is showing that NIFTY may show the level of 17490.
Now if we take a look at Derivatives data we find that there are 90,00,000 OI on call side at 17400 and 17450 cumulatively. So if NIFTY crosses 17450 and sustains there are high chances that Index will show the level of 17500 on intraday basis.
However, despite all the bullishness , it is advisable to remain cautious at upper level as NIFTY is already in the overbought zone and a dip can be observed anytime.
Keeping the current scenario in view it is not recommended to buy NIFTY above 17300 levels. Hence, buying opportunity can be found near 17300 for a target of 17450 with a SL of 17225.
The sellers must take a chance in the range of 17450-500 with a SL of above 17550. The target will be 17350 and 17300. Once the target is achieved the trade could continue with Trailing Stop Loss.
INTRADAY PICK FOR TOMORROW:
1.INFOSYS
Buy in the range of 1575-1580
Target: 1630
SL 1549