CNX NIFTY(INDIA) is trading within the gap down range of 8900/8650 as selling pressure near the 9000 level caused a gap down to the 8700 levels on the back of news that US interest rates were heading up. It must be said that the near term advantage is with the Bears which will be confirmed once the minor support near the 8650 mark gives away. A break below the 8650 mark will open up targets of 8500/8250 levels. A break above 9000 is required for the Bullish case to get re-established. A MACD divergence lends further weight to the fact the breakout will be bearish. The intermediate uptrend can be assumed to be over once the level of 8500 breaks. Nifty derivatives analysis suggests that FIIs are buying into puts on expectation of lower prices. The chart is for educational purpose and not an invitation to buy or sell.
|SELLING PRESSURE TO INTENSIFY?|