The Nifty closed at 24,996.35 on Monday, showing a strength of 148 points. According to technical indicators, the market is currently at a crucial turn, from which a limited range can continue or a mild breakout may be seen. RSI is at 57.45, which shows that the market is not yet overboat and is likely to move.
Indicators like Stochastic RSI and TSI show that the market is recovering from the bottom, while GAP Histogram and MacD show a little positive mum. Although the clear Directional UM (UPSIDE MOVE) signal has not been found, Price Action and Oi Buildup indicates that tilted to CE (Call Option) can be kept for mild boom.
Option Chain: If we examine the details of the support and resistance range, the Nifty’s ATM strike is 25,000. According to the option chain, 25,000 CE increased by 52% and 25,100 CE by 55% OI, a clear sign of short cover. At the same time, there is a growth of 125% in 25,000 PE and 231% in 24,950 PE, which shows that strong support has been created from powerful put writting at the following level. If the Nifty survives above 25,120, an elaborate movie of up to 25,250 may appear.
Talking about the most effective time for trading, two special time slots are considered suitable for trading on May 27.
When not a new entry, and what points to book: 1:42 in the afternoon can increase volatility in the market and the strength of the new trend decreases. So it would be better not to make a new entry in CE at this time. It would be advisable to book a mutilation in a pre -running position, or a trailing stopclos can be set.
If the market is trapped below 24,900, a reversal entry can be taken in PE (PUT Option), such as buying between 24,900 PE ₹ 165–1 185, and a target of ₹ 220– ₹ 250. The afternoon session can see the illusion and further ups and downs in the market, so it will be safer to avoid taking a new position after this time. (Note: The information provided here is provided only for the purpose of information, it is important to mention here that the investment in the market is subject to the risks of the market. So always consult an expert before investing.)
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