The market is hitting back-to-back punches to lifetime highs and celebrating like Diwali. Everyone is happy to see this market and earning money as well. But we have to keep in mind bears are there and they can take handover anytime. If we see the chart, the market has shown a good rally from 15900 to 17900 with small small corrections.
In the chart, nifty has spent many days in a range of
15600-15900 then given breakout. The bullish candles were big in comparison to bearish
candles that means every dip showing buying. However, the nifty chart is overstretched,
and RSI is in the overbought zone from the last month. If we look at the large
caps, then almost all are overbought. No one is ready for profit booking. As
per my study, I am expecting one more dip in the next week until 17600 i.e.,
day support and resistance is around 18000. The 17600 is the right location to
go long in index or stocks.
The bank nifty has recently touched to its lifetime highs
and fallen from the same. If we look at the daily chart, then the bank index is
getting neutral near highs. As per the line chart, it is making Double Top. The
coming week is the monthly expiry week, so we are expecting long unwinding.
After that, we have to wait for the option data of the next series and we will
get a clear idea. The bank nifty is at no trading zone, so it better wait for
confirmation.
Telegram: https://t.me/Intraday_King
-------------------------------------------------------------------------------------------------------------
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.
-------------------------------------------------------------------------------------------------------------------------------------
