Nifty Daily Analysis Report And Strategy 31 May 22

Nifty opend gap up as discussed in our previous article and made a bullish candle on daily chart. Nifty gave a strong close which indicates bullish momentum to be continue. RSI breaches 50 level from downside which is a bullish indication. Now RSI sloping upwards and comes to a level of 54.23. MACD giving bullish signal and making green histogram on daily charts. India VIX continue to go down and comes to a level of 19.98 which is also a positive indication for markets.

Nifty Technical Analysis

According to option chain, 16700 may act as a resistance followed by 16840 and towards downside 16600 followed by 16500 are looking good support as strong PE writing were seen on the respective levels. So if Index breaches 16700 then buying can be done in Index for a target of 16840 and 16910. For Bears if Nifty breaches 16612 then Index can be short for a target of 16530 followed by 16440.

Conclusion And Strategy

STRATEGY TO TRADE NIFTY FOR THE WEEK : Wait for Nifty to reach 16840 short Nifty near 16900 with SL of 17000 for a target of 16500. Near 16500 square off your positions and Long Nifty near 16400 with SL of 16300 for a target of 16900.

Stock to buy : Pidilitind.

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