In this December month, we were blessed with five expiry dates. I would say that the last three expiry dates are like a roller coaster ride, highly volatile. We are entering our 4th week now, and it is a technically correction mode. Technically, a 10% drop from the recent high is referred to as a correction. Look at Nifty50 on Monday. It opened with a huge gap down and the panic selling happened because of the major levels where we know it was taken out. 17000 and 16700. This range is important because it is 10% from the recent high and also a fib range. After the range was broken, the NIFTY50 made a new week low near the 16400 level, then pulled back and closed above 16600.This kind of pull back kills aggressive traders.
Tuesday opened with a near 0.96% gap up. Think about it! NIFTY50 as well as a strong rebound. It closed above 16700, so it looks good. In NIFTY50, we can expect the major levels to turn into resistance like Nifty did. Today, resistance is near 17950.We can expect the 17000 level to continue as resistance for the week, so I would be confident about selling at a strike price above 17200 on the downside of 16400 for a safe trade.
Keep an eye on the daily candle as well. There is a doji candle . We can expect moments in both directions Make a decision accordingly.
Tuesday opened with a near 0.96% gap up. Think about it! NIFTY50 as well as a strong rebound. It closed above 16700, so it looks good. In NIFTY50, we can expect the major levels to turn into resistance like Nifty did. Today, resistance is near 17950.We can expect the 17000 level to continue as resistance for the week, so I would be confident about selling at a strike price above 17200 on the downside of 16400 for a safe trade.
Keep an eye on the daily candle as well. There is a doji candle . We can expect moments in both directions Make a decision accordingly.
