Nifty future is best analysed by using combination of daily and weekly chart, charts are telling us that short covering rally is wait. Nifty future is trading near 100EMA (exponential moving average) on weekly chart, while on daily chart 50EMA is acting as support and will be region where we expect short covering to start. This week seems to be vital for adding long positions, traders who have shorted at beginning of this week will exit in panic because of stop loss for short position will be triggering. For being on safe trading side buy some nifty 5400 call option rather than buying nifty future.
Leave a Reply