NIFTY - Head and Shoulder pattern.

19 thg 12, 2021

Nifty at important support of 17000. 17000 has been tested 6 times already on a daily time frame. Huge put open interest on 17000 PE and weekly PCR is 0.49 which indicate market is at a crucial support and market is heavily oversold. Monthly OI also indicates put unwinding majorly at 17300 but still put writers stuck. On an hourly time frame NIFTY seems to be making a head and shoulders pattern with the left shoulder and head made. Expecting a short term reversal in the market till levels of 17325 to 17425. This would give an opportunity to put writers to exit their weekly and monthly positions and also improve the PCR.