Nifty Analysis Report For 04 May 22
Nifty opened on a positive note today on a level of 17096 and after made a high of 17132. Index seen selling pressure and continue to go downwards and breaches the important level of 16800 after which Nifty fell down to a level of 16623.
Technical Analysis For 05 May 22
Nifty made a strong bearish candle on daily chart. Future and Option data is negative for 05 May 22. RSI is sloping downwards and now comes to a level of 39.60. PCR is at 0.662 which is in oversold zone. On daily chart Price is away from 5DMA so if nifty open gap down then there will be a green candle on daily chart. Markets react on news so all technical data become negative but market must bounce back and show some recovery on 05 May 22 or day after.
On 28 Jan 2022, FII long position comes at 27.99 and RSI at 37.93. Nifty closes on 17102 on that day after a down trend. After that market reached 17780 in next 3 days. Now ton 04 May 2022, FII long position at 24.84 and RSI at 39.60 and Nifty close on a level of 16677. Same price and technical pattern is seen so if history repeats and Market follow its rules then there will be a recovery in the markets in coming days.
Conclusion And Strategy For 05 May 22
Now lets talk according to technical data. Nifty looking weak on charts but trading on important support level. If Nifty open flat or gap down and breaches 16620 then Index can be short for a target of 16500 and 16450. If Nifty breaches 16700 towards upside then buying can be done in Index for a target of 16842 and 16930.