NIFTY - RETRACEMENT ON THE CARDS?
Updated
Nifty has been falling continuously after making new ATH above 20,000. As the market is digesting the rate pause and a hawkish FED, it has found support at a rising trend line.
Nifty has formed a double doji in the Daily TF and has shown signs an upcoming bounce at the very least. RSI is showing a good divergence in 75 min TF.
https://www.tradingview.com/x/1QSAewok/
Further evidence lies in today's (26th September) trading session when Nifty showed resilience when DOW futures were down roughly over 200 points because of Moody's warning of a potential downgrade on US economy if there was a shutdown on Oct 1.
It seems the right time to play the bounce and if it manages to sustain above the 0.618 ratio, fresh buying can be witnessed too. I expect a bullish monthly expiry on Thursday bearing any black swan events.
Nifty has formed a double doji in the Daily TF and has shown signs an upcoming bounce at the very least. RSI is showing a good divergence in 75 min TF.
https://www.tradingview.com/x/1QSAewok/
Further evidence lies in today's (26th September) trading session when Nifty showed resilience when DOW futures were down roughly over 200 points because of Moody's warning of a potential downgrade on US economy if there was a shutdown on Oct 1.
It seems the right time to play the bounce and if it manages to sustain above the 0.618 ratio, fresh buying can be witnessed too. I expect a bullish monthly expiry on Thursday bearing any black swan events.
Note
The expiry view has turned out wrong, and nifty has further tanked 1% on weak global cues. However, the view remains the same, a bounce to around 0.618 level is expected soon. View negated below 19500 closing basis.Trade closed: stop reached
Today we have seen a good bounce of upto 1%, making a high of 19,724. However, a selloff was witnessed in the last 1 hour. Nifty remains weak and any gapup on Tuesday could be used to sell the index.
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