Nifty 50 IndexLong
Nifty - Potential upside tomorrow, current PA of higher lows
Nifty has been forming higher lows and is currently in a bearish wedge pattern. But it has stayed afloat above 18200 after multiple drops below it which was the retracement level of overall trend from 18887 to 17774.
So bias is long since it is holding the level of 18200 and there are multiple supports below. If Nifty opens flat potential upside towards 50% (18330) and 61.8% (18460) is a possibility. If gap up at 18330 region then waiting for PA is advisable.
FII option data also indicates heavy call buying of around 87k quantity. So all factors recommends a long position.
However, since Nifty is in a bearish wedge pattern there is a possibility of downside if the wedge breaks. But shorting immediately has less probability of being successful since Nifty has multiple supports. So waiting for a potential inverse N pattern or a possible retest of wedge is advisable before going short. Target could be around 18080 which is the 38.2% retracement for the upmove from 17774 to 18265.
Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.
So bias is long since it is holding the level of 18200 and there are multiple supports below. If Nifty opens flat potential upside towards 50% (18330) and 61.8% (18460) is a possibility. If gap up at 18330 region then waiting for PA is advisable.
FII option data also indicates heavy call buying of around 87k quantity. So all factors recommends a long position.
However, since Nifty is in a bearish wedge pattern there is a possibility of downside if the wedge breaks. But shorting immediately has less probability of being successful since Nifty has multiple supports. So waiting for a potential inverse N pattern or a possible retest of wedge is advisable before going short. Target could be around 18080 which is the 38.2% retracement for the upmove from 17774 to 18265.
Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.
Disclaimer
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