Nifty crunch time, using option chain
Post is for educational purposes only and not intended as trading/investing advice. Nifty 50 and Nifty 500 indices are both trading in a tight range for the last week. Almost a formation of an mild ascending triangle, except its too small a time frame and also the price isnt criss crossing the pattern, with at least 2 touches to each side of the triangle. This is a congestion and one wonders which direction it will break in. The Chaikin Money Flow indicator is showing a bearish divergence on its default setting (20). However a 10 period CMF is supporting an upward breakout. Should one take 10 day CMF as we are looking at a smaller period of 5 day congestion where we are trying to figure out if there is more buying by bulls or more buying by bears. Its worth tracking this point to check once the breakout occurs, for future application! Option chain: Looking at June's contracts on the Nifty here. Most CALL OI is at a level of 9500, this can
