Nifty Future appears to be in the 4th wave corrective move and when complete will push it to the new low with a target of 10175. It has the resistance at 10483 and 10511 and support at 10435. A bounce above 10511 may take it to 10720 which is approximately 50% retracement level of wave3 decline and also the upper resistance level of Keltner Channel in 60-min chart.
The day traders can buy it above 10459 with a stop loss of 10434 for the target of 10511 and 10565 and sell it below 10434 with a stop loss of 10459 for the target of 10365 and 10330.
The huge gap down open on Friday didn’t provide an opportunity to the positional traders to create a short position as the Risk to reward ratio was unfavorable. They should continue to wait for this correction to complete before initiating a short position. However, the aggressive trader can sell it below 10434 with a stop loss of 10516 for the target of 10175.
Please do not trade for first 15 minutes of the morning session.
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