In my previous analysis, I spoke about NIFTY being stuck in 2 channels at a DAILY time frame. Here again, I bring to you another channel but in a smaller time frame of 15 MIN. Looks like it's in a perfect descending channel ready to break. If there's a gap down it will enter the bearish territory. FIIs are putting a huge selling pressure so my bet is that it may break to the downside and give interesting intraday shorting opportunity at a low risk-reward ratio. I will post my trades for tomorrow in the update later.
Comment:
Quite a violent indecisive expiry today! The descending channel was respected from the top. The price is still roaming around inside the channel. We could expect some directional move if it breaks the channel
1. Option chain: 16000 seen as resistance with massive call selling, 15700 seen as support with massive put selling
2. FII stock and futures data give a bearish outlook.
Being a monthly expiry, would not want to take too much risk. Will be looking for opportunity to sell calls in case there's a bearish candlestick pattern around 15850 or if it opens with gap down.