NIFTY broke the previous day low and the fifth wave was done at 18590 and from thereon was a 100+ point move till 18700++ and managed to close at 18700.
Considering wave A as 18886 - 18590 - the ongoing 'B" is likely to retrace upto 18750 - 18775 - a 50% to 61.8% retracement - holding 18625.
INTRADAY TRADE SETUP:
There are cluster of resistances @ 18720-730
*18717 - 15 min Bollinger band resistance
* 18728 - prev day high
*Channel resistance @ 18725
Break of 18625 - Channel resistance would drag Nifty lower towards 18500 - 50% of the retracement of the move from 18133 - 18886.
So, trading above 18728 - will lead towards 18750 -18775
& break below 18630 - will drag toard 18550 - 18520
Trade Plan :
Buy (call option) above 18725 Sl 15 min close below 18700 - (fall back into channel)
Sell below (buy put option) 18630 SL 15 min close above 18650 ( back into channel)
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