In the last 2 days, Nifty 50 crashed almost 400 points and that was a big fall. However, Nifty has taken support and given closing with a small green candle. In compare to the Bank Index, Nifty is showing more weakness.
Technical Overview of Nifty: On 08th July 2019, Nifty has broken important support of 11650 and made low of 11523 in a day. Also closed near next support i.e. 11550. Today it has opened gap down by 28 points and made low of 11461 and has taken Trend Line support. Nifty has given today’s closing in green but exact near resistance. I am expecting a small bounce from this level, so we can long Nifty from the current level or buy on dip until 11500 with the small stop-loss of 11460. Our first target is 11655 if closes above 11655-60 then expecting more rally. Risks reward ratio is 1:1 for a short-term trade.
If we see option chain of Nifty then we can clearly say CALL writing is happened in Nifty. Also, mix and match data showing in PUT side. However, technical is strong of Nifty so it will not take time to change options data. If today end of the day technical as well as options data change into a positive direction then there are more chances of the fresh rally.
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Disclaimer: The contents produced here are purely for educational purpose. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
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