Trade Setup: Nifty getting back fresh upside momentum; avoid shorts
![](https://m.economictimes.com/thumb/height-450,width-600,imgsize-88022,msid-86943876/trade-setup-nifty.jpg)
Synopsis
Options data presented an interesting picture. While the 18,000 level continued to have the highest accumulation of Call Open Interest, the same level also saw the highest amount of Put writing.
Nifty has ended just at its previous high point of 11,947. It has attempted a breakout by testing the incremental high of 18,041. However, it is important to note that the breakout has been attempted, but not yet confirmed. A breakout shall happen when Nifty keeps its head above the 17,947 level and subsequently move past the 18,000 level convincingly.
Options data presented an interesting picture. While the 18,000 level continued to have the highest accumulation of Call Open Interest, the same level also saw the highest amount of Put writing. This speaks of the inherent strength of the market. If Nifty stays above the 17,950 level for long, it may see another thrust upward.
The 18,000 and 18,090 levels are likely to act as potential resistance points, while support should come in at 17,880 and 17,850 levels.
Stocks Recommendations
We recommend avoiding shorts because if any consolidation occurs, that will be a sign of strength. There are no technical signs in the market that hinted at any impending larger corrective move as of now. Looking at the current technical setup, we recommend continuing to make selective purchases while protecting profit at higher levels.
(Milan Vaishnav, CMT, MSTA, is a Consulting Technical Analyst and founder of EquityResearch.asia and ChartWizard.ae and is based at Vadodara. He can be reached at milan.vaishnav@equityresearch.asia)