A hugely volatile day observed following global cues. Flag patter in observed on 1 minute chart with a downside breakdown however, it is near a support zone. Wish to see the support would be held and continue with sideways movement.
Breakout visible at the end of the screen capture!
Yesterday, we entered into a trade for tomorrow's expiry. We also discussed about the presence of strong resistance around 14650 to 14660 levels for Nifty50, that is where we have observed some correction or reversal. Our trade for Sell 14800CE is intact, while we have shifted the short position of 14150PE to 14250PE which is a safe bet.
20 day EMA stays below 50 day EMA signals the continuation of bearish sentiment. Evening star pattern in daily chart confirms the resumption of bearish sentiment. Expect the index to stay below 22000 level for this expiry.
Trend continued to be in bearish territory on back of EMA (20 EMA below 50 EMA). Recent correction from the resistance of 140 level where roof of the downward trend line hovers.
On contrary, as MACD above zero expect the price to find support around 120 levels. In the recent past, the price comfortably found support around the same level twice.
Expect a bounce...
Recent announcement from FM helped the index to witness breakout from consolidation phase of 10700 to 11200 levels.
MACD confirms the positive momentum.
Expect this month expiry would be above 10600 levels. Sell 10600 31Oct2019 put at 28 levels. Lot size: 75
Price crossover above 200-EMA and 50-EMA signals that the trend in positive note. Expect the price to move upward in the coming days. Recent trough around 2500 level would lend necessary support in the coming days.
Expect the stock would expire above the support band of 2300 - 2400 levels for Aug series. Recommending option writers to sell 2300 Put Aug.
EMA 50-day and 200-Day signals the bearish trend. Recent reversal from 50-day EMA and MACD confirms the downward trend. In the coming days, the stock would retest the downside level of 200. Expect it to expire below 200-EMA which hovers around 240 level.
It witnessed a turnaround by finding a breakout from recent consolidation. As well, MACD confirms the trend reversal. Expect it would expire above 290 level for this expiry. Due to low liquidity, advised to execute the transaction by placing a sell order @ 1.5.
Recent struggle nearer at 20EMA signals that bears are still hold the control. As well, short term EMA stays below long term EMA confirms the bearish trend in the stock.
Expect it to expiry below 33 level.
As price continue to stay below short term downward trend line and close below 50-day EMA with bearish engulfing would keep the trend under bearish territory. Expect Nov series would expiry below 720 and would fetch return of more than 20%p.a post expenses includes brokerage and tax.