Nifty closed at 5243.60 with a marginal gain of 9.20 points. As indicated earlier, below 5250, Nifty may hit 5150 and 5080 on the downside though there are some support around 5224-27 and 5200. However, if Nifty able to cross 5250 and 5300, a reversal may occur that push Nifty again around 5380 and 5400 level. Today's view is same as yesterday, i.e., Nifty may trade between the range of 5177 and 5290.
As indicated Monday, on daily chart, some bearish patterns (ICELAND REVERSAL PATTERN & potential EVENING STAR PATTERN) are developing that may cause upside LIMITED. It is better that every rally may be utilized to exit longs, if any, and/or Nifty creating short position. Failing to hold 5250 level will result 5080/5050. However, if Nifty manages to close above 5420/5440 on daily/weekly basis, the target will be 5600.
From options data,,highest options base has been shifted to 5000 put and 5600 calls. However, since near the money strikes of 5200 put and 5400 call still has the highest, it is expected that Nifty may trade in a range of 5200-5400 for the time being. In any case, breaching of this range may lead 150-200 points in Nifty on directional bias.
DISCLAIMER: BEING A TRADER, I MAY HAVE SOME VESTED INTEREST.
