Dragonfly Doji In Week Chart
India’s benchmark Nifty has formed a dragonfly doji in weekly charts. A Dragonfly Doji in the weekly chart could be an early sign of a potential swing in price. The direction of the swing can be determined by the current closing of the option’s gamma. The confirmation of the market direction next week will be determined by the candle following the dragonfly doji. In today’s session, Nifty has taken support around 10772 today and scaled up 10823 approx. The index has closed this week around 10809 approx, which was also closing price yesterday. Nifty is likely to trigger a swing trade opportunity early next week.
Key Takeaway’s For Tomorrow
In today’s session, Nifty traded between 10772 and 10824 approx. The index has closed near a crucial pivot point in today’s session and is likely to trigger swing moves as it has also formed a dragonfly doji in the weekly chart. Nifty had taken support exactly at today’s range low, however, it stopped 18 points short of the intraday target of 10842 approx. Going forward, if the index swings above Monday’s range high, it might scale up to 10877 approx. On the other hand, if Nifty swings below Monday’s range low, It is likely to scale down to 10721 approx.
Observations In The Hourly Timeframe
In the hourly session, Spot Nifty has closed around 10792 approx. The index is likely to swing up to 10825 approx if it trades above Monday’s hourly range high. On the other hand, if Nifty swings below, Monday’s hourly range low, it might scale down to 10748 approx.
Bank Nifty Options Data