Will NIFTY Bullish momentum continue?

8 Okt 2023

As we discussed in our last analysis that it returned back to channel it will be bullish and it gave 2 days back to back bullish momentum. But now we can see its on confusing if it's a breakout or still in the pattern. once its out of the pattern it will be going bullish. by looking at the chart market seems to be sideways for tomorrow.

Reasons:

1. Inverted HNS target is 19800 that has not achived yet. if it opens high it will have a resistance at 19800.
   
2. 19800 is also price action resistance.
   
3. Downside 200 EMA and Price action level will be providing the support.
   
4. RSI is in bullish zone (> 60) but having bearish divergence.
   
5. Trendlines are confusing its not a clear breakout for falling wedge pattern.
   
6. it's having 2 cases: case-1 and case-2. that is marked on the chart.
   

Verdict:
observe 15 min market and follow case-1 or case-2

Plan of action:
SELL 19500 PE + SELL 19750 CE once bullish momentum gets confirm exit 19750 CE.