Nifty50: OVER-HEATED market and some interesting calculations.
Nifty50 is found at the upper-end of bollinger band, which will be acting as resistance for the same.
Now some calculations.
Nifty50 made a low of 7893.80 in 2016
High just before the elections in UP: 8992.50
If we take the difference of the above two 8992.50-7893.80 = 1098.7 points
Now the low point after the measuring gap was created was 9019.30
If we add to that 1098.7 we get 10118. Nifty50 made a high of 10114.85. Pretty close right.
One can book profits at current levels or go short keeping SL at 10130.
The 20-day SMA could be used as a target, which is currently placed at around 9800
Now some calculations.
Nifty50 made a low of 7893.80 in 2016
High just before the elections in UP: 8992.50
If we take the difference of the above two 8992.50-7893.80 = 1098.7 points
Now the low point after the measuring gap was created was 9019.30
If we add to that 1098.7 we get 10118. Nifty50 made a high of 10114.85. Pretty close right.
One can book profits at current levels or go short keeping SL at 10130.
The 20-day SMA could be used as a target, which is currently placed at around 9800
Comment:
Trade did work wonderfully. Nifty Aug Futures made a double top formation at 10150, and since then been falling. I hope, you all found it helpful