Nifty outlook 18th Oct 2023
Updated
Closing Range - 19700/19921
Extended range - 19618/20003
Bearish Harami formed in the previous session was negated today by a bullish hammer. The volumes are slightly better than yesterday's session. We again saw Indiavix cooling by another 3.5%. All these indicate a restricted downside. Nifty took resistance at the middle of the newly identified upwads channel. No major red flags today. We have seen stock reacting to results after a day or two. If HDFC Bank runs tomorrow, we have see shosrtcovering in Nifty post 19850.
Possible trade: Risk reward ratio is in favour of bulls. You can do long with low of 17th Oct as SL.
P.S. - 0.5%-1% return on capital can be considered good in intraday.
Extended range - 19618/20003
Bearish Harami formed in the previous session was negated today by a bullish hammer. The volumes are slightly better than yesterday's session. We again saw Indiavix cooling by another 3.5%. All these indicate a restricted downside. Nifty took resistance at the middle of the newly identified upwads channel. No major red flags today. We have seen stock reacting to results after a day or two. If HDFC Bank runs tomorrow, we have see shosrtcovering in Nifty post 19850.
Possible trade: Risk reward ratio is in favour of bulls. You can do long with low of 17th Oct as SL.
P.S. - 0.5%-1% return on capital can be considered good in intraday.
Note
Correction: Incorrectly stated candlestick pattern of 16th Oct as Bullish Harami, while that is actually a Bearish Harami pattern. The analysis is correct, just that the terms switched verbatim - Please ignore the slip of tongue.Note
Global events overnight may change the upward texture for Nifty today. Follow the buy on dips strategy, unless 19650 is breached on the downside.Trade closed manually
Though Nifty closed within bottom of day range 1 & 2, the view of an uptrending day completely went wrong today.
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