INSUBCONTINENT EXCLUSIVE:
NSE Nifty opened on a negative note, but started moving higher from initial trades
The index rose more than 200 points from the opening levels and concluded around the 9,000 level
It formed a small green body candle on the daily chart.
The market breadth remained in favour of the advancing counters for a fourth
consecutive session, which is a sign of relief for the bulls
The index is hovering around 20-DEMA from the last four sessions and now if it sustains below 8,800, then we may see a fall towards 8,650
While on the upside, resistance is placed at 9,250 and then 9,400-9,500.
On the monthly options front, maximum Call open interest was at
10,000 and then 9,000 strike, while maximum Put OI was at 8,000 and then 8,500 strike
Option data indicates immediate trading range between 8,500 and 9,500 levels.
India VIX moved down by 7.32 per cent to the 46.10 level
VIX is cooling down from the higher levels, which may provide some stability to the bulls.
Bank Nifty breached its losing streak of the last
two sessions and gained 1.80 per cent
The index opened with a gap-down, but witnessed buying interest from lower levels and moved higher towards 19,500
The banking index concluded at 19,400 and formed a positive candle on the daily chart
However, till the time it sustains below 20,300, the bears may have the upper hand
At the current juncture, immediate resistance for Bank Nifty is placed at 20,300 and then 21,300-21,500, while support can be seen around
Traders are advised to remain light on positions as overall medium-term chart structure is negative and bounces are getting sold off.
Nifty
futures rose 1.45 per cent to the 9,060 level
We witnessed long buildup in stocks such as Motherson Sumi, Max Financial Services, Cholamandalam Investment, Balkrishna Industries and
Jubilant FoodWorks, while shorts were seen in Tech Mahindra, Piramal Enterprises, Kotak Bank, Concor and Bharti Infratel.
(Chandan Taparia
is Technical - Derivative Analyst at MOFSL
Investors are advised to consult financial advisers before taking an investment calls based on these observations)
