And where is Nifty heading tomorrow with Option Series expiring on 07 Nov October 2019?
Monday, Nifty opened with a small gap up of 33.3 points at 11,974.60 and Nifty’s high at 11,978.95. After the market went into profit booking mode taking the index to the lowest of the day at 11,861.90. The day closed with a loss of 24.10 points closing the index at 11,917.20. NIfty made Hanging Man at the end of the day on the daily chart and weekly suggesting indecision of bulls and bears indicating some correction and consolidation after a positive move of seven consecutive days. Today, the DIIs were the net seller with -1593.71Cr and FIIs were the net buyers with 473.17Cr. From the Nifty50 stack, 23 stocks advanced, and 27 stocks declined.
Today’s closing is below daily Pivot at 11,945.27, above weekly Pivot at 11,813.4 and 200 DEMA at 11,285. Stochastic is at 83.4 in the overbought zone, RSI is at 69.48 while MACD is still above zero with a bullish crossover. The market needs stronger domestic and international cues to sustain above 11,981 to continue its bullish journey towards 12,000 and 12,100. The daily resistance levels are at 11,945, 11981,12,000 and 12,050 while as support levels are at 11,905, 11,855, 11,843, 11,814, 11,800 and 11,786 for intraday. Looking at current immediate support and resistance levels the next day trading range seems to be between 11,800 to 12,050.
On the Options side, Put writing was seen at 11,700, 11,800, and 11,900 while Call writing was seen at 11,950, 12,000,12,050 and 12,100 levels indicating the shifting of support and resistance levels downside and bearish bias. Looking at the Open Interest data and the PCR at 1.05, the market range seems to be in 11,750 to 12,000 for intraday with some correction and consolidation. Profit booking is expected as NIfty approaches 12,050, which may turn market volatile and chappy in intraday.
Technical analysis with a sound understanding of the market is the key to trading success, however, sometimes market forces are stronger than the past analysis. Unexpected (domestic or international) factors make the technical analysis go haywire for a while, hence we have to monitor fresh data and new dynamics of the market during trading hours to consistently make money.
We trust the information will be helpful in your own analysis of the market and make trading a profitable and better experience.
This analysis has been shared for educational purposes. Please seek your financial adviser’s guidance before trading or investing.
Happy Trading and Keep investing safely!
