Nifty - Consolidation continues.
Nifty was volatile but within a small range. It did gave a brief buy signal during the day on my EMA over RSI indicator (two hours chart), but by the the time two hour candle completed, it was again in Sell Mode. In the process, it did gave 30-40 points trade opportunity while the RSI was above EMA.
RSI value on daily chart, is at 57, which indicates bullishness, but on two hours chart, it continues to remain below EMA and a downward trendline can be drawn connecting several tops, this gives clear indication of a consolidation or period if indecisiveness.
Nifty Option Chain suggests a probable settlement between 11600 and 11700. FII as well as DII have turned net sellers for past 2-3 days, without their participation, Nifty may find it difficult to cross 11700 in near future.
In my opinion, one should wait for the RSI to move above the EMA or the downward trendline, before taking any long positions.
Short trades should be taken only if and when RSI on daily charts comes below 50 and stays there for some time.
Incase you find RSI complicated, Nifty above 11645 and 11711 will provide comfort to the bulls and below 11550 and 11470 levels that will allow bears to take the center stage.
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This post is not an advice to speculate using leveraged products, one must thoroughly understand the financial implications involved, consult some financial advisor before taking any positions.
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Please consider hitting the LIKE button below the chart, if you find this post / idea worthy and informative. You may also FOLLOW me over this forum for periodic updates on Nifty and Bank Nifty .
RSI value on daily chart, is at 57, which indicates bullishness, but on two hours chart, it continues to remain below EMA and a downward trendline can be drawn connecting several tops, this gives clear indication of a consolidation or period if indecisiveness.
Nifty Option Chain suggests a probable settlement between 11600 and 11700. FII as well as DII have turned net sellers for past 2-3 days, without their participation, Nifty may find it difficult to cross 11700 in near future.
In my opinion, one should wait for the RSI to move above the EMA or the downward trendline, before taking any long positions.
Short trades should be taken only if and when RSI on daily charts comes below 50 and stays there for some time.
Incase you find RSI complicated, Nifty above 11645 and 11711 will provide comfort to the bulls and below 11550 and 11470 levels that will allow bears to take the center stage.
----------------------------------------------------------------------------------------------------------------------------------------------------
This post is not an advice to speculate using leveraged products, one must thoroughly understand the financial implications involved, consult some financial advisor before taking any positions.
----------------------------------------------------------------------------------------------------------------------------------------------------
Please consider hitting the LIKE button below the chart, if you find this post / idea worthy and informative. You may also FOLLOW me over this forum for periodic updates on Nifty and Bank Nifty .
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