Support- 16740-16800
Resistance- 17200(first) and 17400(second)
Now Indian market is overbought zone. Another huge gap today will make buying risky. So what has changed ? Not much except some comments from Fed and secretary of treasury in US. Economy is slowing down with peaking employment in US and this is the puzzle everyone is trying to solve. Result from tech giants are better than expected and hence US indices futures trading higher.
Technically, with gap up opening Nifty will become overbought as per RSI. 16200 is first resistance from where profit booking can be expected. If it sustains above 16200 then we will see Nifty marching to 16400. On lower side, closing below 17000 is important for short selling. My personal view is short nifty if there is gap up of 200 points. Keep stop loss as per own comfort. Buying is not recommended at higher level.
PCR is 1.41 and FIIs position has reached to 57% from 45%. Both data show Nifty is slightly overbought
