NIFTY ANALYSIS FOR 10-05-2021
First, Let’s talk about the last trading day, On Friday Nifty opened gap up that too above the major resistance level of 14800 where maximum call writers presents but soon after one hour call writers disappears and shift there position to 15,000 level, on the other side put writers increase their position at 14,800 and push the Nifty to close above 14,800, closing level(14,823.15).
Techncially, in first 1 hr chart Nifty formed the spinning top candle which suggested that till the high of spinning top candle hold i.e. 14863, we can witness selling pressure in Nifty. Nifty made low of 14765 and gave close at 14,823.15. If We do analysis of last 3 days trading then we will find that Nifty holding the levels of 14,500 on closing basis as maximum put writers stand there to protect the Nifty to fall further. Now the position of put writers changes from 14,500 to 14,700 which suggest that in coming trading days 14,700 act as an major support for nifty and 15,000 where maximum call writes presents will act as a mjor resistance level on nifty.
On weekly chart, Nifty forming the flagpole pattern and breakout from this flag patterns happens to be above 15,000 on closing basis. Means if nifty give close above 15,000 level then we can witness a strong momentum in Nifty and it can move up to 15,500 level. While on the downside till 14,500 level holds it remains a buy on dip candidate, but if on any given day if it closes below 14,500 then next target would be 14,062 and then 13,600.
TRADING STRATEGY FOR COMING DAY
BUY NIFTY FUT ON DIPS NEAR 14,800 WITH STOP LOSS OF 14,700 ON CLOSING BASIS TARGET OF 14,900-15,000