Is this the right time to make fresh positions in the Index? The same question would be in many of the traders mind, most of the analysis will be advising to still be long on the index. Overall the market is positive, being cautious will always come in handy at this point, booking profit at each level would be advised.

We are seeing an opportunity at a higher level where the risk is high comparatively. We will look forward to the opportunity, why it's worth taking and what we can expect from here onwards.

Multiple times the candle has taken support at its 50 and 25 day EMA's by making some candlestick pattern and each time this is on higher sight. If we look properly the index is steadily making new highs and higher lows which suggest uptrend.

Another observation would be the index was consolidating from 3days and after 3 days we saw a strong buying candle which closed above the consolidation area suggesting buyers are willing to pay high for higher return.

The Index is trading above the ICHIMOKU CLOUD and we are expecting the baseline to cross the conversion line in the coming day, the lagging line in trading higher which suggests the strength in the index.

The DMI is also showing a crossover which suggests buying.

Buying Index is adviced with a SL of 4410.

Opportunity

Aug 29 2021

1

1