Nifty makes a Bullish hammer on daily chart suggesting a tug of war between bulls and bears.

Nifty ended above 8200 and paired yesterday losses and made a bullish hammer indicating short term bullish strength. A hammer is recognized by prevailing downtrend and small body is observed at the upper end of the trading range. The color of the candle is not important while the lower shadow is almost twice of the candle’s body.

It i a tug of war between bulls and bears and trading range as per channel on daily chart seems to be 8150 – 8350. As per OI data trading range also seems to be between a 150 – 200 points. Long addition is seen in 8300 & 8400 CE while liquidation in 8400 PE suggest upside resistance for bulls.

Sell on rise should be the strategy used for coming sessions.