Nifty formed a bearish engulfing candle by taking resistance from EMA 20, EMA 50 and MA 20 on daily TF at 18124. We had a confirmation candle below the bearish engulfing yesterday but the candle formed was a spinning top/doji. Nifty has been taking support from EMA 100 and MA 100 at 17880-17900 and is currently trading in this narrow range between 17800-18100.
Today is expiry day and positions by FIIs, PCR at 0.6 and Open Interest clearly show a negative bias. A break above yesterday's high and then subsequent break of 18k can trigger short covering upto atleast 18124 as the short positions are threatened. In case of a gap up the first 15 min candle becomes really important to decide the trend.
No downside possible until atleast 17850 is broken and more so if yesterday's low is taken out then potential supports can come in at 17700 and 17650 region.
Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.
Today is expiry day and positions by FIIs, PCR at 0.6 and Open Interest clearly show a negative bias. A break above yesterday's high and then subsequent break of 18k can trigger short covering upto atleast 18124 as the short positions are threatened. In case of a gap up the first 15 min candle becomes really important to decide the trend.
No downside possible until atleast 17850 is broken and more so if yesterday's low is taken out then potential supports can come in at 17700 and 17650 region.
Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.