What to expect on monday?
I will refrain from posting my bull levels and bear levels for monday as they will not be of any use. Instead i go back to my favourite channel analysis.
I had writen on 5th of may (Channelling nifty) that next channel resistance is at 3775. On monday, expect market to comfortably surpass this level and the next channel resistance comes in at near 4000 level on nifty (see chart below).
Coincidentally, according my mathematics, circuit breaker level for nifty comes in at 3974.6 nifty spot level (readers should confirm the same with their broker and please do drop in a comment if this level is wrong so that it will benefit everyone).
Hence this level should be used to book longs of the straddle, longs one might have entered into. Well atleast partially.
Those who do not have positions can use this level to build up positional short.
Thinking about the unlikely scenario of market not moving up violently, expect violent selling to set in.
