Nifty Analysis : 21 May 2019

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Hello Friends,

Today nifty opened slight gap up but could not sustain above all time high of 11856 as mentioned in yesterday's analysis.
This is possibly due to profit booking, nifty has faced selling pressure near all time high.

Today's close is at 11709 which is below mid point of yesterday's bullish candle.
This has formed Dark Cloud candlestick pattern which is a trend reversal pattern.



As we can notice on daily chart, RSI is shown negative divergence between recent 2 highs.
This is one more bearish signal along with Bearish Candle stick pattern.

Options data shows increased call writing at 12000 Call options. 12000 continues to act as major resistance & 11500 Put options will continue to act as support level for this expiry series.

To conclude, Volatility will continue for the next two days till election results day on 23rd May.
Nifty to face further selling pressure if previous day's low 11591 is taken out.


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Disclaimer: I am not SEBI Registered analyst. All above analysis are just for study purpose.
I am not responsible for any gain or loss arising out of trades taken based on the study shared above.
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Location: India

Comments

  1. Mandar D.21 May 2019 at 21:01

    If results are negative, NIFTY can break 10800 levels...Let's see..

    ReplyDelete

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