India’s Nifty 50 is trading in the red, but is defending the 50-hour EMA 10,445.
The bullish hammer reversal confirmed on Friday indicates scope for a corrective rally toward 10,700-10,800 in the next few days.
Therefore, I would be a buyer on the dips. The bullish outlook would be invalidated if the index closes today below the downward sloping 5-day EMA.
Brent oil is looking south, having witnessed a bear flag breakdown on the hour chart.
As of writing, the front-month contract is changing hands at $84.26 per barrel. The RSI o the hourly and dailies is biased toward the bears. Notably, the daily RSI has rolled over from the overbought territory and has breached the rising trendline.
I would want to sell oil for re-test of $82.64 with stops above $85.14.
The broader outlook would still remain bullish as the 50-day, 100-day and 200-day are sloping upwards and are located one above the other.
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