Nifty is forming a falling wedge pattern, there is a high likelihood Nifty may trade within this channel. During this channel, it may take support and resistance of 17800 and 1800 in between.
In hourly chart, Nifty is trading below 50 EMA and 100 EMA which further confirms bearish pattern.
How to trade this setup ?
1. Sell call option and choose strike basis your risk profile, risk averse trader should choose higher strike price.
2. Buy put option when there is bounce with weak candles near resistance
You should not do -
1. Buy call option unless Nifty decisively break the 18200 levels
2. Sell put option must be avoided.
Macros in favours of Bearish Pattern.
1. Interest Rate Hike by US, India (FOMC Minute)
2. Risk of COVID infection, hospitalization
3. DXY is rising creating pressure on USDINR rate
4. Policy related change in budget 2023, tax implications
Happy Thursday :)
Regards.
TradeManthan Team
Disclaimer
We are not SEBI registered investment adviser, trade at your own risk. The above information is for learning and knowledge only.
In hourly chart, Nifty is trading below 50 EMA and 100 EMA which further confirms bearish pattern.
How to trade this setup ?
1. Sell call option and choose strike basis your risk profile, risk averse trader should choose higher strike price.
2. Buy put option when there is bounce with weak candles near resistance
You should not do -
1. Buy call option unless Nifty decisively break the 18200 levels
2. Sell put option must be avoided.
Macros in favours of Bearish Pattern.
1. Interest Rate Hike by US, India (FOMC Minute)
2. Risk of COVID infection, hospitalization
3. DXY is rising creating pressure on USDINR rate
4. Policy related change in budget 2023, tax implications
Happy Thursday :)
Regards.
TradeManthan Team
Disclaimer
We are not SEBI registered investment adviser, trade at your own risk. The above information is for learning and knowledge only.