NIFTY ANALYSIS AND INTRADAY PICKS
NIFTY ON 08-08-2022
Defying all technical indicators and guesses NIFTY finally broke the trading range of 17350-500 and succeeded to close above 17500 which has been a crucial level to cross.
Buying in heavy-weights HDFC Bank and Reliance strengthen the positive sentiments of Investors and consequently all the vital indices closed in Green except IT which lost a negligible 0.02%.
BANK and AUTO emerged to be the leaders with gains of 0.84% and 0.97% respectively.
NIFTY finally closed at 17525.10 with a marginal gain of 0.73%.
Technical View : (Daily Chart)
NIFTY has made a Bullish candle which indicates the higher chances of follow up buying.
NIFTY is moving above EMA 13, 21, 34 and EMA 21< EMA34<EMA13 which can be interpreted as the short-term trend is in the positive territory.
RSI is above 70 level (77.91) which indicates that NIFTY is still in overbought zone.
Support and Resistance : Daily Chart
17410-17350 will work as the support levels for NIFTY.
On the upper side NIFTY will face resistance in the range of 17618-17796.
View for Traders:
The signals are mixed as the momentum is supporting the bullish sentiments at the same time the momentum is indicating that NIFTY is in overbought zone with higher probability of correction from the current levels.
So there are two prime questions:
First, what to conclude from such mixed signals and Second ,how to trade the Index on the basis of such signals.
As answer to first question, I would like to state that one should avoid concluding such signals and to answer the second I would like to state "follow the trend ( Which is a universal solution) " until the Index corrects itself.
Hence, for tomorrow session, one may hold long position until Index holds above EMA 13, 21 and 34 on 5 Min chart. To create short positions, one should wait for Index to breach EMA, 13, 21 and 34 on 5 min chart.
For tomorrow, suggesting any level for buying and selling may be a double-edged sword so for now it is preferable to avoid levels. The levels may come into play in either of the following cases:
1. NIFTY breaks 17800
2. NIFTY breaches 17350
Until and unless either of the conditions is satisfied, the Index levels may be avoided for trading.
INTRADAY PICKS:
IRCTC
Buy in the range of 666-668
Target 685
SL 655
SHRIRAM TRANSPORT
Buy in the range of 1410-1415
Target 1: 1427 Target 2: 1444
SL 1397
Defying all technical indicators and guesses NIFTY finally broke the trading range of 17350-500 and succeeded to close above 17500 which has been a crucial level to cross.
Buying in heavy-weights HDFC Bank and Reliance strengthen the positive sentiments of Investors and consequently all the vital indices closed in Green except IT which lost a negligible 0.02%.
BANK and AUTO emerged to be the leaders with gains of 0.84% and 0.97% respectively.
NIFTY finally closed at 17525.10 with a marginal gain of 0.73%.
Technical View : (Daily Chart)
NIFTY has made a Bullish candle which indicates the higher chances of follow up buying.
NIFTY is moving above EMA 13, 21, 34 and EMA 21< EMA34<EMA13 which can be interpreted as the short-term trend is in the positive territory.
RSI is above 70 level (77.91) which indicates that NIFTY is still in overbought zone.
Support and Resistance : Daily Chart
17410-17350 will work as the support levels for NIFTY.
On the upper side NIFTY will face resistance in the range of 17618-17796.
View for Traders:
The signals are mixed as the momentum is supporting the bullish sentiments at the same time the momentum is indicating that NIFTY is in overbought zone with higher probability of correction from the current levels.
So there are two prime questions:
First, what to conclude from such mixed signals and Second ,how to trade the Index on the basis of such signals.
As answer to first question, I would like to state that one should avoid concluding such signals and to answer the second I would like to state "follow the trend ( Which is a universal solution) " until the Index corrects itself.
Hence, for tomorrow session, one may hold long position until Index holds above EMA 13, 21 and 34 on 5 Min chart. To create short positions, one should wait for Index to breach EMA, 13, 21 and 34 on 5 min chart.
For tomorrow, suggesting any level for buying and selling may be a double-edged sword so for now it is preferable to avoid levels. The levels may come into play in either of the following cases:
1. NIFTY breaks 17800
2. NIFTY breaches 17350
Until and unless either of the conditions is satisfied, the Index levels may be avoided for trading.
INTRADAY PICKS:
IRCTC
Buy in the range of 666-668
Target 685
SL 655
SHRIRAM TRANSPORT
Buy in the range of 1410-1415
Target 1: 1427 Target 2: 1444
SL 1397
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