Nifty color on weekly has been on Sell mode from the start of the week. This coupled with the Daily Lev Sell mode is bearish for the index.
Nifty Inside Day and Narrow range setup:
If today Nifty closes below the 5520 levels then the index will break below the low of Inside day. The Inside day has high and lows within last day and is a sign of volatility contraction.
Also the Nifty daily range (High - Low) is lowest among last 7 days which is also a sign of volatility contraction.
So any break form this range can bring a one side move. This setup when back tested gives a good result and the direction persists for next 3-5 days.
Nifty Inside Day and Narrow range setup:
If today Nifty closes below the 5520 levels then the index will break below the low of Inside day. The Inside day has high and lows within last day and is a sign of volatility contraction.
Also the Nifty daily range (High - Low) is lowest among last 7 days which is also a sign of volatility contraction.
So any break form this range can bring a one side move. This setup when back tested gives a good result and the direction persists for next 3-5 days.
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