Nifty Daily - Dark Cloud cover
Updated
*Nifty gapped up on 09/17/21, however within first two hours the up move was rejected and sellers dominated the market.
This formed "Dark Cloud Cover" pattern where the current day candle gaps up and reverts to down move. By the close of day, red candle penetrates at least at 50% level of previous day candle showing the seller dominance.
*This created strong resistance at the upper wick , 17800 .
*trade idea (aggressive): Sell 17800 CE in tracking quantity. initial stop loss would be 50% of the premium (if aggressive). Position can be hedged by creating a spread. Pyramid as the market moves in favor.
*Trade Idea (Conservative): wait for retest of 17800, once rejected, initiate position in FNO of short side.
Note
Downtrend is more likely, Short position initiated. First support at 17250-17300 range. If this breaks then next Key levels are 16670 or 50 EMA.
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