One of the things which we can observe in the index is that their history almost replicates, it doesn't mean that all candles are the same, it just says that at several points we will see moves which are similar to previous one but exactly the same size.

In the Index previously near the same level the hammer was made which led to index move upward and gap was seen, as per gap study we can say that this is an EXHAUSTION GAP, exhaustion gap are gap which are similar to breakaway gap but they fill within 21 day, and once the gap is fill it suggest that the trend is reversing and a short position can be taken in the direction of the fill, i.e. downside in this case. Exhaustion Gap can be profitable, they can't be measured but the target is the next support or the resistance in our case next support. The next support for the index is near 735zone, so we expect the index to correct till 735.

But as i started earlier again we have seen a hammer at the same level so we will wait for one more confirmation to go short, we are expecting a bit of pullback in the index and then a fall, if the index is able to close above 777 we won't go short on the index. We will sell on rise and the range will be 770-773 and will maintain a SL of 777 for a TP of 750-735

The Rsi is near the oversold zone, which should be a concern going short at current rate.

Advice : Sell on Rise

NETH 25

Oct 06 2021

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