Nifty Outlook 4th Oct 2023
Updated
Range - 19407/19648
Extended range - 19319/19736
The Bullish Harami candlestick pattern is negated with today's negative close. This is the first time after Mar 23 that Nifty has broken the channel. Note that the magnitude of up/down, movement once a channel is broken, is directly proportionate to the time the index has spent in the channel. Nifty has formed a new downward channel on hourly time frame. We can see 19430 or even 19300 levels if Nifty doesn't close above 19750 soon. 50 DMA is also a resistance now for Nifty.
Possible trade will be on the short side, when Nifty approach higher end of the day range. Trade with SL to maintain a risk reward ratio of 1:2.
P.S. - 0.5%-1% return on capital can be considered good in intraday.
Extended range - 19319/19736
The Bullish Harami candlestick pattern is negated with today's negative close. This is the first time after Mar 23 that Nifty has broken the channel. Note that the magnitude of up/down, movement once a channel is broken, is directly proportionate to the time the index has spent in the channel. Nifty has formed a new downward channel on hourly time frame. We can see 19430 or even 19300 levels if Nifty doesn't close above 19750 soon. 50 DMA is also a resistance now for Nifty.
Possible trade will be on the short side, when Nifty approach higher end of the day range. Trade with SL to maintain a risk reward ratio of 1:2.
P.S. - 0.5%-1% return on capital can be considered good in intraday.
Trade closed: target reached
Range mentioned in the morning acted precisely as support & resistance when observed at 15 min chart. Hope today's was a profitable session.
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