Nifty had a good up-move of approximately 2.25% over the first weekly expiry of March 2019. This positive move is being credited to a pre-election rally.
The probability of the current ruling Government position winning the upcoming elections decisively is perceived to have risen higher. Also, the reducing tension in the conflict between India and Pakistan
After the strong up-move in the first weekly expiry of March, Nifty has shown some weakness in the last trading session on Friday.
Though there was no sign of heavy profit booking, Nifty may likely remain range-bound with a positive bias in the next weekly expiry.
WEEKLY NIFTY TREND AND TECHNICAL OUTLOOK:
The above hourly Chart of Nifty indicates that Nifty is likely to remain in 11000 – 11200 levels for this weekly expiry. Any dip that at 10960 levels will be a good buying opportunity for a probable target of 11169 – 11200 levels.
In the case of Nifty, it will be prudent to wait for lower levels for initiating a trade taking into consideration the Risk reward ratio. At the current levels, if you do take a trade, you would have to be very alert in taking quick profits.
In the event that Nifty does not give any dip and trades above 11117 levels and sustains decisively for 60 minutes, then we may initiate a long position with a target of 11169 – 11200 – 11250 levels for this weekly expiry.
If you are trading with weekly options, take a trade only if Nifty gives the desired lower levels or if it sustains above the 11117 levels as premium decay can completely derail your positions even if Nifty moves in your favour after a couple of trading sessions.
[DISCLAIMER: The post above is intended for general information and educational purposes only, not a Buy/Sell recommendation. Please use your own risk management techniques. Any loss incurred from following my personal opinion/analysis will solely be your own responsibility]