Nifty view for this week (02/12-04/12)

1. Price Action:

Nifty after giving a one sided move from 11600 to 13000 in November month is trying to consolidate near resistance region of 12900-13000. Unless we get a close above 13000 psychological level we can expect consolidation or small pullback near this region

2. Bollinger Bands

After expansion phase in Bollinger Bands, we can see contraction phase going on which indicates upside momentum in Nifty is weakening.

3. RSI

Nifty RSI is more than 50 which indicates bullishness but we can see a bearish divergence. If we get close below 12833 on daily basis then one should expect weakness in Nifty. Above 13145, bearish divergence will fail.

4. ADX

ADX, DMI+, DMI-, all are moving down which indicates decrease in momentum same conclusion like Bollinger Band and Price Action is suggesting.

5. Nifty Weekly Option Chain (03/12/2020 Expiry):

Significant OI builtup in call side which means 13000 and 13100 will be a good resistance region for Nifty in this week. Nifty put writing seen at 12900 and 13000 but they are relatively weaker than call writer. So bias would be slightly bearish.

6. Nifty Monthly Option Chain (31/12/2020 Expiry):

In Monthly Option Chain, call writers seems weaker than put writers. First resistance seen at 13300 and then at 13500. Whereas significant OI is built up on Put side. Open Interest at 13000 PE is highest which indicates December to be a bullish month.

Stay Safe and have a Nice Trading Week!

Disclaimer: This view is based on data points. Don't trade blindly based on view shared here. Do your own analysis and plan your trade properly.

Option Chain data is dynamic and it changes from daily, so the position has to be monitored daily. If there is any change then I will update about it.

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