Nifty view for 28 December 2017

Nifty has grown extremely weak in the last trading session. A bearish engulfing pattern has emerged with an RSI fall from 70 levels.It all points to one situation, a short term sell off in the Indian markets. The first candle has been formed, we have to see how today’s candle pans out, if the close is below yesterdays low,Index put options will gain in premium.

Since Nifty is weak it is not ideal to buy into any new position today, stay in cash until the situation stablises.Given below is the Daily chart of Nifty, you can see the last candle almost fully enveloping the previous days candle.Watch for today’s close, if it is above yesterdays high, buying may continue if it is below yesterdays low then selling frenzy will start.

 

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