Nifty Technical Analysis For 26 May 22
Nifty again made a bearish candle on daily chart after give up all the gain of opening. A strong sell off was seen which dragged Nifty to a level of 16000. Nifty looking weak on technical indicators. RSI sloping downwards and now come to a level of 40.55 on daily chart. PCR now come to oversold zone of 0.748 and this is also a zone from where Index took support in last few sessions. MACD still giving sign of reversal by making small green histogram on daily chart. On option chain, strong CE writing can be seen and PE unwinding can be seen which indicates weakness of Market for 26 May 22. But If Index opens gap up and hold 16100 level then short covering rally can be seen in Index which can take Nifty to test 16350 level.
Conclusion And Strategy For 26 May 22
For 26 May 22, buying can be done in Index above 16128 for a target of 16225 and 16350. For Bears Index can be short below 16000 for a target of 15911 and 15800.
Stocks to accumulate for long term : Amber, Polycab, Polyplex.
Option strategy : Sell Polycab 2150 PE Jun.