Today's price action in 
NIFTY formed a classic Supply Candle—indicating strong seller dominance with hardly any buying interest throughout the session.
Heading into tomorrow, we are likely to witness one of two potential scenarios:
Scenario 1:
We may open with a gap-down, driven by the pressure of today’s supply. If that happens, expect the opening to be below 25285.
In this case, avoid buying the dip. Instead, look to sell on any intraday bounce near 25333.
Scenario 2:
Alternatively, we could see a mild gap-up due to call unwinding, triggered by the emergence of a new resistance zone.
If the index approaches 25400, that will be a strong supply area. In such a scenario, look to initiate short positions near 25400 with a stop-loss around 25433 (on hourly closing basis).
Also, keep an eye on 25222. If we bounce from this level in the second half, it would suggest strength returning for the coming week.
However, a failure to hold this support and a close below it could push us towards the 25000 mark.
BANKNIFTY also continues to show weakness. Immediate support is around 56700, while resistance stands at 57100.
With earnings season underway, this is a crucial time to focus on the Earning Pivot strategy.
Stay selective—only trade setups with strong earnings-backed pivots.
On the sectoral front, Power continues to lead. I traded
HPL today which still looks good.
Next in line are
CNXFMCG and #SUGAR—both sectors showing early signs of strength.
Let me remind you—chaos often breeds the best opportunities. Use this phase to curate your watchlist for the next leg of the rally.
That will be all for today. Trade smart and have a profitable tomorrow.
NIFTY formed a classic Supply Candle—indicating strong seller dominance with hardly any buying interest throughout the session.Heading into tomorrow, we are likely to witness one of two potential scenarios:
Scenario 1:
We may open with a gap-down, driven by the pressure of today’s supply. If that happens, expect the opening to be below 25285.
In this case, avoid buying the dip. Instead, look to sell on any intraday bounce near 25333.
Scenario 2:
Alternatively, we could see a mild gap-up due to call unwinding, triggered by the emergence of a new resistance zone.
If the index approaches 25400, that will be a strong supply area. In such a scenario, look to initiate short positions near 25400 with a stop-loss around 25433 (on hourly closing basis).
Also, keep an eye on 25222. If we bounce from this level in the second half, it would suggest strength returning for the coming week.
However, a failure to hold this support and a close below it could push us towards the 25000 mark.
BANKNIFTY also continues to show weakness. Immediate support is around 56700, while resistance stands at 57100.With earnings season underway, this is a crucial time to focus on the Earning Pivot strategy.
Stay selective—only trade setups with strong earnings-backed pivots.
On the sectoral front, Power continues to lead. I traded
HPL today which still looks good.Next in line are
CNXFMCG and #SUGAR—both sectors showing early signs of strength.Let me remind you—chaos often breeds the best opportunities. Use this phase to curate your watchlist for the next leg of the rally.
That will be all for today. Trade smart and have a profitable tomorrow.
TrendX INC
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
TrendX INC
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.