Continued bounce from 17800 level in the index making it a make or break level. Not only the repeating hitting at the said support level is making it weaker, while also acting as defense zone from the bears.
Weekly close has been as a doji, so uncertainty hovers for upcoming sessions.
Let's see if the marked levels may guide us in intraday trades.
Falling channel has been identified after index took a hit from upper line of falling wedge from Daily chart. Expecting 17800~ level to act as support on immediate basis, if catches up.
Probably the falling channel is indicating @ sell on rise scenario. No positive updates on fundamentals front. Let's see. :)
After the breakdown of Rising wedge (marked in purple), I'm looking at the intraday trade probabilities with R:R ratios highlighted with Green & Red colors, that's my own fraction of imagination which should not be treated as recommendation or suggestion to trade.
Combination of RSI + rising wedge on 15 min may result in good fall if index inches towards 18300 level, which is also supported by good CE OI build up at the mentioned level.
I will be looking at the trade zones according to assigned colors. This should not be treated as recommendation.
Rising wedge formation usually indicates upcoming weakness. If it triggers, we may see index approaching downside levels.
I have marked my probable trade levels with Risk : Reward ratio for my personal reference , it should not be taken as reference.
Nifty Has probably formed its bottom yesterday itself for short term (at least). Updates about Ukraine war coming in with a hint of willingness to end the war from parties. This is my basis for expecting a short term bottom formation. Updates awaited in this regard.
For tomorrow's session, have tried identifying some levels. Marked expected entry levels are my...
Usually 200 ema plays as a strong Support or resistance level, considering where it is positioned from current price levels.
If further downside has to be seen on charts, prices may take a pause or a bounce back from 200 ema on Daily.
The news side:
IEX is to commence trading on GTAM from this Friday, 21st August 2020, which gives the stock good support as well as a boost for a good upward movement.
The 196 level seems cautious, may work as resistance.
However, the latest formed depth of head & shoulder pattern gives a target of 200+
Radico will soon reach the resistance level of 435. Swing Target should be of 433.
However, at resistance, I can see a bullish pattern which may further move the stock up. Trailing Stop Loss will work.
STRONG BULLISH VIEW
1. INR 50,000 crore fund raise via debt securities
2. Bank Deposits have risen 25% from a year ago
1. Ascending triangle (highlighted on chart) giving strong support
2. Evening Star (Bear Pattern) has formed at support clearly indicates the bearish pattern will fail, backed by bullish sentiments and news.