Nifty Outlook for the week 2nd MAY to 5th MAY

NIFTY

A long green candle with a small lower shadow emerged on the charts yesterday as the Nifty soared past the 18,000 mark, indicating the continuation of bullish momentum with strength.

 

Accordingly, the index also negated last week's bearish engulfing candle pattern on the weekly chart and now appears to be going towards the development of a new higher top. On the daily charts, the momentum oscillator RSI (14) readings reached 70 and are now in the overbought zone.

The market is anticipated to rise up to the next resistance of 18,200-18,300 levels in the coming week as the short-term upward trend of the Nifty continues intact.

The latest rise was correctly foreseen by the writers, who had a respectable short PE position at the 17800 strike price. Immediate support is located at 17,900 levels. At the higher strike prices, there was a less significant build-up of short CE on the higher end.

On the higher end, Nifty might keep moving up until it maintains a closing price above 18000. 18200 is the level of resistance on the higher end, and a rally may continue over this level.