After opening the gap up with a decent gain up, Nifty erased all its gains after facing resistance near 17900 levels. Despite volatility, Nifty managed to conclude Friday's session with decent gains. Nifty has formed an indecisive Doji candle which indicated directional less among Bulls and Bears.
POINTS TO NOTE:
1. On Friday, Nifty took support near 17000 levels and bounced back and concluded the week with gains.
2. Support and Resistance levels are indicated on the chart.
3. Daily RSI shows positive divergence against the price indicating a further upward moment. The MACD is also hovering above zero line signalling bullishness.
4. The maximum CALL contract stands at 18000 (15Lakhs) which will act as strong resistance. 17900 levels have the second-highest CALL contracts (13Lakhs) which will act as an initial hurdle.
5. The maximum PUT contract is at 17800 (13Lakhs) levels followed by 17700 (12Lakhs) levels which will act as strong support.
MY View
Nifty is facing heavy resistance near 18000 levels. If Nifty takes out this level on a closing basis further upward movement opens up till then it will consolidate and the index will remain volatile. The upward trend is intact till Nifty is above 17500 levels, breaking of which the index will be dragged down to 17000 levels. I think NIFTY will consolidate for a while in order to absorb the gains. I recommend waiting for some time till the situation get clarified more. Long investors should remain invested. I recommend not to create any fresh positions on either side.
THOSE ARE MY VIEWS AND ARE ONLY FOR KNOWLEDGE PURPOSES ONLY, ACT WISELY.
POINTS TO NOTE:
1. On Friday, Nifty took support near 17000 levels and bounced back and concluded the week with gains.
2. Support and Resistance levels are indicated on the chart.
3. Daily RSI shows positive divergence against the price indicating a further upward moment. The MACD is also hovering above zero line signalling bullishness.
4. The maximum CALL contract stands at 18000 (15Lakhs) which will act as strong resistance. 17900 levels have the second-highest CALL contracts (13Lakhs) which will act as an initial hurdle.
5. The maximum PUT contract is at 17800 (13Lakhs) levels followed by 17700 (12Lakhs) levels which will act as strong support.
MY View
Nifty is facing heavy resistance near 18000 levels. If Nifty takes out this level on a closing basis further upward movement opens up till then it will consolidate and the index will remain volatile. The upward trend is intact till Nifty is above 17500 levels, breaking of which the index will be dragged down to 17000 levels. I think NIFTY will consolidate for a while in order to absorb the gains. I recommend waiting for some time till the situation get clarified more. Long investors should remain invested. I recommend not to create any fresh positions on either side.
THOSE ARE MY VIEWS AND ARE ONLY FOR KNOWLEDGE PURPOSES ONLY, ACT WISELY.