Nifty Trend for April 2017
Nifty trend for April 2017 is non directional and is in range bound trading zone. There is a momentum of selling in the market due to to global uncertainties and expectations of poor Quarterly results.
GLOBAL TRENDS TO WATCH OUT
- Tension between US and North Korea
- Domestic Quarterly results likely to remain tepid
- Keep a watch on the IT sector.
TECHNICAL ANALYSIS FOR NIFTY TREND
Daily Chart: (Fibonacci Extension) – Nifty Trend
|Nifty Support / Resistance – Nifty Trend||Levels|
Bollinger Bands (30 Day Interval, SD 2) – Nifty Trend
India VIX: (Nifty Trend)
- As per Support Resistance levels, Nifty has already broken S1 and currently holding on to S2 levels. If these breaks down, we may see Nifty heading lower towards 9074 levels it any recovery takes place
- On the upside 9300-9350 levels is a very strong resistance and Nifty very likely to remain between 9150-9350 levels till April expiry
- Check out the Nifty trend for last 2 daily candlesticks formed. On 13 April, Nifty broke both previous day’s low and closing indicating more negativity in the next couple of trading days
- Keep a check on Bollinger band levels. If Nifty breaches 9092 level, a little more downside very likely.
- Watch out for the VIX (Volatility Index) levels. As per chart, VIX levels are steady at lower levels indicating continuation of current downtrend
My overall view for April Nifty trend is Non-directional, slightly negative biased to neutral and Nifty likely to range bound trade between 9150-9350 levels till expiry.
If you are trading with Nifty futures, Short sell with a target of 9100 levels with a Stop loss of 9235 levels. Enter short levels at 9190 levels.
If trading with Nifty options
- Write Nifty 9350ce and 9150pe
- Write Nifty 9400ce and 9200pe
Limited risk, limited gain strategy if Nifty remains between 9150 – 9350 before expiry.
Implied volatility is low and current downtrend or range bound trading probability is high.
Please do not trade the Nifty trend only on the basis my personal views here. Make sure you do your own research and please use proper risk management. If you want more personalized views, mail me at firstname.lastname@example.org
Please share your views on Nifty trend for April 2017 in the comments below!