NIFTY ANALYSIS AND INTRADAY PICKS
NIFTY ON 10-08-2022
After a narrow gap-up opening, the Index observed a minor profit booking was during the first trading hour and NIFTY took support at its first level ( Near 17410) and traded in a range bound manner during the entire day.
METAL, AUTO and BANK supported the Index with gains of 1.62%,0.18% and 0.13% respectively
NIFTY finally closed at 17534.75 with a marginal gain of 0.06%.
Technical View : (Daily Chart)
NIFTY has made a hanging man kind of pattern which indicates the bearishness and a trend reversal from the current levels.
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 which is intact.
RSI is above 70 level (78.06) which indicates that NIFTY is still in overbought zone and a correction may be observed at any point of time.
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:
Formation of a Hanging man Candle along with an RSI level 78.06 strengthens the probability of correction from current levels. But will it happen tomorrow? Doesn’t seem so. At least not with the opening as at the time writing this blog SGX NIFTY is trading at 17720.50 with a gain of 0.99% and DJI is trading with a gain of 1.44%.
As mentioned in the previous post, among the mixed signals the same strategy will come into play and that is 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.
Let me repeat again, for tomorrow’s trading session, suggesting any level for buying and selling may be a double-edged sword so for now it is preferable to avoid. 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 levels may be avoided for trading.
INTRADAY PICKS:
Jindal Steel and Power JINDALSTEL
Buy in the range of 399-400
Target 408
SL 396
ICICI General insurance ICICIGI
Buy in the range of 1242-1246
Target 1265
SL 1232
After a narrow gap-up opening, the Index observed a minor profit booking was during the first trading hour and NIFTY took support at its first level ( Near 17410) and traded in a range bound manner during the entire day.
METAL, AUTO and BANK supported the Index with gains of 1.62%,0.18% and 0.13% respectively
NIFTY finally closed at 17534.75 with a marginal gain of 0.06%.
Technical View : (Daily Chart)
NIFTY has made a hanging man kind of pattern which indicates the bearishness and a trend reversal from the current levels.
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 which is intact.
RSI is above 70 level (78.06) which indicates that NIFTY is still in overbought zone and a correction may be observed at any point of time.
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:
Formation of a Hanging man Candle along with an RSI level 78.06 strengthens the probability of correction from current levels. But will it happen tomorrow? Doesn’t seem so. At least not with the opening as at the time writing this blog SGX NIFTY is trading at 17720.50 with a gain of 0.99% and DJI is trading with a gain of 1.44%.
As mentioned in the previous post, among the mixed signals the same strategy will come into play and that is 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.
Let me repeat again, for tomorrow’s trading session, suggesting any level for buying and selling may be a double-edged sword so for now it is preferable to avoid. 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 levels may be avoided for trading.
INTRADAY PICKS:
Jindal Steel and Power JINDALSTEL
Buy in the range of 399-400
Target 408
SL 396
ICICI General insurance ICICIGI
Buy in the range of 1242-1246
Target 1265
SL 1232
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