NIFTY ON 09-05-2023
Beginning the session on a positive note NIFTY marched towards 18350 which proved to be the immediate hurdle and profit booking was observed at this level which dragged NIFTY towards the day low of 18229.65.
After a rally of such length the correction seems natural and hence in my view there is not much to discuss under this segment.
NIFTY closed at 18265.95 making a small negative candle on Daily Chart.
Technical View : (Daily Chart)
NIFTY has made a small Bearish candle which appears after a long Bullish candle. This indicates towards the formation of Evening Star reversal pattern which will be confirmed by tomorrow.
NIFTY is moving above EMA 13, 21, 34 which could be interpreted as the short and mid term trend is up.
RSI lies at 67.96 which ideally indicates strong positive momentum in NIFTY. However, a clear diversion is visible here as the Candles are making Higher Highs and Higher Lows but the RSI has become flat. This signals the higher probability of further selling pressure.
Support and Resistance : Daily Chart
NIFTY has support at 18208-18160 level. Below this Index may take support at 18100. On upper side NIFTY will face resistance near 18314-18350 Level.
View for Traders:
A formation of small Bearish Candle after a reasonable rally indicates that Index will correct from current levels. Now the question is: to what level??
As per the Fibonacci Retracement levels there are high chances that Index may retest 18000-17975 level in upcoming trading session and consolidate in the range of 17975-18350 before any further Breakout/ Breakdown.
Hence, for tomorrow’s session it will be lucrative to Sell NIFTY in the range of 18250- 275 with SL of 18350 for a target of 18200-18175.
Buy NIFTY in the range of 18160-18175 with a SL of 18125 for a target of 18225-250.
Picks for tomorrow
1. LAURUS LABS
Buy in the range of 330-332
Target 343
SL 325
2. GREAVES COTTON
Buy in the range of 144-146
Target 156.80
SL 140
Beginning the session on a positive note NIFTY marched towards 18350 which proved to be the immediate hurdle and profit booking was observed at this level which dragged NIFTY towards the day low of 18229.65.
After a rally of such length the correction seems natural and hence in my view there is not much to discuss under this segment.
NIFTY closed at 18265.95 making a small negative candle on Daily Chart.
Technical View : (Daily Chart)
NIFTY has made a small Bearish candle which appears after a long Bullish candle. This indicates towards the formation of Evening Star reversal pattern which will be confirmed by tomorrow.
NIFTY is moving above EMA 13, 21, 34 which could be interpreted as the short and mid term trend is up.
RSI lies at 67.96 which ideally indicates strong positive momentum in NIFTY. However, a clear diversion is visible here as the Candles are making Higher Highs and Higher Lows but the RSI has become flat. This signals the higher probability of further selling pressure.
Support and Resistance : Daily Chart
NIFTY has support at 18208-18160 level. Below this Index may take support at 18100. On upper side NIFTY will face resistance near 18314-18350 Level.
View for Traders:
A formation of small Bearish Candle after a reasonable rally indicates that Index will correct from current levels. Now the question is: to what level??
As per the Fibonacci Retracement levels there are high chances that Index may retest 18000-17975 level in upcoming trading session and consolidate in the range of 17975-18350 before any further Breakout/ Breakdown.
Hence, for tomorrow’s session it will be lucrative to Sell NIFTY in the range of 18250- 275 with SL of 18350 for a target of 18200-18175.
Buy NIFTY in the range of 18160-18175 with a SL of 18125 for a target of 18225-250.
Picks for tomorrow
1. LAURUS LABS
Buy in the range of 330-332
Target 343
SL 325
2. GREAVES COTTON
Buy in the range of 144-146
Target 156.80
SL 140
Target GREAVES COTTON Hit.