Trade Setup

 Trade Setup: Dollar rebound to vex Nifty, action shifts to broader market

Synopsis

On Friday, Nifty will face resistance at 11,350 and 11,385 levels while supports will come in at 11,250 and 11,185 levels.

It was a day of correction for domestic equities on Thursday, as the market opened lower and ended on a negative note. Following overnight weakness in the US market and some technical rebound in US Dollar Index, Asian markets saw a negative start across the board, and India was no exception.

Headline index Nifty opened with a gap down and stayed in the negative territory throughout the day. While no recovery was seen during the day, Nifty did not breach its opening low, though it did te ..

The Relative Strength Index, or RSI, on the daily chart stood at 60.01. It has marked a fresh 14-period low, which is a bearish signal. The RSI remains neutral and does not show any divergence against price. The daily MACD remains bearish and trades below the signal line.

A Falling Window occurred on the candles. This resulted out of a gap-down start. Falling Windows often result in continuation of a bearish trend. However, this would need confirmation in the next trading session.

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