After witnessing continuous selling in the forenoon session, the market offered a pleasant surprise when it went past 16100 and closed near to 16200. While the rally was fueled by strong shorts booking their profits and weak ones covering their losses, the move from the days low to the close can be viewed as mildly positive. While Bank Nifty managed to break its recent strong resistance zone, Nifty is still trading below the recent resistance zone of 16360-16400. In the lower time frame we can see price momentum divergence and this could indicate the possibility of a minor downward move. For the day we expect the market to trade between 16360 and 16060. Any breach of the boundary mentioned could see price continuing in the direction of the breached boundary. If rejection candles are found near the levels mentioned one may go long in ATM options targeting a move in the opposite direction.
Possible Upside Levels - 16260/16320/16360
Possible Downside Levels - 16120/16060
Disclaimer:
Center for Research in Financial Markets and Economy (C- FAME) is an initiative of the School of Business & Management at Christ Academy Institute for Advanced Studies, Bengaluru. The views presented here are for educational purposes only. C- FAME or the author does not take any responsibility for the trades initiated based on the view presented here.
Possible Upside Levels - 16260/16320/16360
Possible Downside Levels - 16120/16060
Disclaimer:
Center for Research in Financial Markets and Economy (C- FAME) is an initiative of the School of Business & Management at Christ Academy Institute for Advanced Studies, Bengaluru. The views presented here are for educational purposes only. C- FAME or the author does not take any responsibility for the trades initiated based on the view presented here.
