Nifty Daily Technical Analysis Report
Nifty opened in positive zone as PCR was in oversold zone. Profit booking was seen as technical indicator indicates some weakness in market. Good thing is that Nifty is able to hold 16350 and close above it. As per technical indicators, Market is still in bearish zone. As RSI is sloping downwards and comes to a level of 46.07 (below 50) which is cause of concern. MACD continue making red histogram on daily charts and indicates strength of Bears. Only good thing which can support Index is PCR which is at 0.73 and can be consider in oversold zone. According to option chain, 16200 may act as a support for markets and 16400 may act as a resistance level for 09 Jun 22.
Conclusion And Strategy
For 09 Jun 22, buying can be done in Index above 16375 for a target of 16474 and 16520. If Index breaches 16400 then short covering may be seen . For Bears Index can be short below 16290 for a target of 16220 followed by 16170. Range for 09 Jun 22 expiry may be 16200-16400.
STOCK TO BUY : AMBER ENT, CDSL
OPTION : Sell Polycab 2100 pe jun.