INSUBCONTINENT EXCLUSIVE:
The index remained quite volatile in a narrow range, but concluded the session near to highest point of the day, marking its highest daily
close in 16 sessions.
The index ended the truncated week a tad above the 9,100 mark, and formed a bullish candle on the daily chart
On a week-on-week basis, Nifty rallied 12.72% and posted its biggest weekly close since May 2009
It formed a Bullish Marubozu kind of pattern on the weekly chart, indicating dominance of the bulls, as it turned from the deep oversold
territory.
After many weeks of continuous correction, the market witnessed emergence of buying interest, which helped Nifty negate lower top
and lower bottom of last seven weeks
All sectoral indices participated in the upside momentum
The index has started to form higher highs and lows since last three sessions and managed to close above the 20 DEMA, indicating some
stability in the market.
Now, the 38.20% retracement of the entire fall from 12430 to 7511, which is placed around 9,400, would act as
immediate hurdle for the bulls
Above that, a major resistance can be seen at the 9,800 level
On the flipside, the immediate support is inching higher to 8,888 and then 8,650-8,555 zone
A hold above 9,100-9,300 zone with followup buying interest can confirm a short-term bottom formation in the market with a shift in trading
bands.
In monthly options, maximum Call open interested shifted to 10,000 and then 9,000 while maximum Put OI was at 8,000 and then 7,500
There was Put writing at 8,500 followed by 9,000 levels, whereas Call unwinding was seen at all the immediate strike prices with minor call
Options data indicated a shift in trading range to the 8,500-9,500 zone.
India VIX moved down 4.78% to 49.74 level
VIX is cooling down from higher levels, which is providing some stability to the bulls amid short-covering activities..
Bank Nifty
outperformed the benchmark index and rallied by 5.10%
It formed a bullish candle on both daily and weekly charts and witnessed a sharp short-covering bounce before concluding the shortened week
Thus, it also ended a losing streak of six weeks, and logged the biggest weekly gain since May, 2009
However, Bank Nifty is still trading below its recent swing low of 21,462 and 20 DEMA
Going forward, immediate resistance for Bank Nifty is placed at 21,000 and then 21,500 levels while supports can be seen around 19,100 and
Overall, the medium-term chart structure is negative, but some bounce could be seen with the immediate support at 19,100
Higher volatility and weakness in the overall trading setup suggest that the upside could be capped again.
Nifty futures closed positive
with a gain of 3.65% at 9,070 level
There was a good amount of long build-up in Lupin, Maruti, LIC Housing Finance, Cipla and Bajaj Auto while marginal shorts were seen in HUL,
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
