The merging area of two significant indicators finally warned a firm resistance for Nifty ahead, which recorded some major correcting from higher levels.
Nifty50 gave quite a start to the session, trading in a defined range without any directional bias for the day until its last hour when Nifty gave up and started unwinding of positions.
It brought the index down from its high point of the day by 150 points and the Bank Nifty by 550 points. At last, Nifty closed with 0.87 per cent or 93.90 points loss.
What’s Charts Suggesting to Traders?
Thursday session would be witnessing the weekly options expiry playing out throughout the day. Nifty 11000 level continues to highest achievable level followed by 10,800 levels. The likely resistance points would be at 10,700 and 10,800 points.
The opening level would be very significant as volatility surged for the first time in the past several sessions, as India VIX rose by 3.97 per cent to 23.10 per cent.
Technical Indicators Warns Bears Entry
Index might witness a soft start of Nifty with 10,765 and 10,820 levels working as a hurdle while the support is coming in 10,610 and 10,515 points.
The Relative Strength Index (RSI) has crossed below 70 marks on the daily chart and is currently stood at 67.40 marks, which is a signal of a bear entry. However, the daily MACD remained bullish for the entire day. The emerging of engulfing bearish candle is not a good sign as it can hamper the ongoing trend.
Summary
Overall, Nifty has successfully scored a top position in between 10,800 – 10,850 levels with no sustainable up move until the index is forced to move past this zone. Currently, the 200-DMA, 10,884 level remains a major resistance for Nifty 50.
It is being recommended to avoid any fresh long positions. Stick to buy a limited specific stock. There is a high probability of all moving up, it that happens might see selling at higher levels.
A cautious approach is advisable to all traders as Nifty remains highly vulnerable.
Table of Contents
The next time I read a blog, I hope its from this website every time.
I receive maximum satisfaction from your site. Thank you
I love your work and claims – Your site is the best and most reliable website in the financial industry.