Inverted Head & Shoulder Breakout in Nifty

As we described in our last article, Nifty has reacted in favor of risky players. If we see the chart then Nifty is reacting from every level either it is Support or Resistance and our all targets are done. In Bank Nifty, the price has given breakout to channel and given good closing above resistance. Let's see the detailed analysis below.

Technical Overview of Nifty: As mentioned previously, the entry price of Nifty is 11300 and the reason is that Nifty has taken support from 11100 two times with confirmation of Morning Star. If you are an option chain analyst then you could easily identify bullish option data of Nifty. On the last trading day, Nifty has given Breakout to Inverted Head & Shoulder with good volumes. However, Nifty has closed exact below the Resistance i.e. 11700. We are expecting small correction here till 11600 i.e. previous top. As per Head & Shoulder target is big i.e. above lifetime high 12900. As per weekly & monthly option chain analysis, 11600 is strong support and Nifty is ready to touch 11900.

 
As per our view, Nifty traders can buy on dips till 11600 or wait till close above 11700. Keep stop loss of 11400 on a closing basis and hold for the target of 11800/12000/12200/++.

 

Technical Overview of Nifty Bank: As compare to last week now Bank Nifty is looking good bullish on a chart as well as in the option chain. In the previous week, Bank Nifty was trading in channel i.e. 28500-27600 and in the last two trading sessions, it has broken the channel with good closing. On the weekly chart Morning Star has been created that is the reason we are expecting a good move in Bank Nifty as compare to Nifty.  Bank Nifty has given closing above 200 DMA and it is reacting the same as Nifty, now Bank Nifty is a leader for the coming week.

Big players can enter at current levels i.e. 29100 or wait of dip till 28500 for targets of 29500/30000/33000/++. Hold with a stop loss of 28500 on a closing basis.

 

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Disclaimer: The contents produced here are purely for educational purposes. 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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