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What is a Good Level to Short the Nifty?

May 2, 2022

Last week, we witnessed a tough war between bulls and bears.

Both managed to hold on to their levels and attacked at their crucial junctures.

The Nifty 50 index traded in the range of 16,900-17,400 with many gaps. It was only on Friday when the bears' attack was severe as the index corrected 2% from highs in the second half.

We saw multiple candlestick patterns like morning star & evening star, but the last pattern formed was bearish engulfing which is reversal.

The lower high formed on index with bearish engulfing will be the toughest hurdle for bulls in May.

Nifty Daily Chart

 

For bears, the 16,800 level will be equally tough as the previous swing low of 16,824 was followed by bullish Harami candlestick pattern and the support of the long-term moving average, 200DEMA, which is placed at 16,865.

The break of either 16,750 or 17,500 will be the trend decider for this week.

As I write this, the SGX Nifty is down to 16,990 levels on the back of fall in US stock markets. So I will wait for the break of 16,750 to look for shorting opportunities.

At present, the Nifty 50 index is trading at 17,000 level. IndusInd Bank and Coal India are the top gainers while Eicher Motors and Apollo Hospitals are the top losers.

If you're interested in being part of my charting journey as I share how to create wealth from the profitable trade setup, join my telegram channel - Fast Profits Daily. You'll get access to the best trading ideas in the stock market.

To know more about how the Nifty and Bank Nifty index are performing, please see the NSE Nifty Live Chart and NSE Bank Nifty long term chart.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

Brijesh Bhatia

Brijesh Bhatia Research Analyst and expert chartist, is the editor of Alpha Wave Profits. Fully committed to his craft, Brijesh has mastered the art of making money by trading using technical analysis. Brijesh has an MBA from ICFAI and 16 years of experience in India's financial markets. He began his career on Dalal Street as commodities dealer and it wasn't long before he developed his own unique trading system. Brijesh worked on his trading system until it could be expected to deliver 5 units of return for every unit of risk.

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