And where is Nifty heading on this weekly expiry with Option Series expiring on 07 Nov 2019?
Nifty opened with a small gap down of 5.7 points at 11,911.5 and continued profit booking for the next two hours. The Market touched the lowest of the day at 11,850. 11,855 to 11,905 is a strong demand zone where it saw good buying picked by FIIs taking Nifty to its recent high at 12,002.9. Nifty gained 48.85 points closing the day in green at 11,966.05. Some of the key factors which drove the market up were: continued reforms of government including the real estate sector trivial, a strong statement of NAnadan Nilekeni of Infoys and continuous buying of FFIs. Nifty made bullish candles at the end of the day on the daily chart suggesting bullish bias. Today, the DIIs were the net seller with -1117.25Cr and FIIs were the net buyers with 1011.49Cr. From the Nifty 50 stack, 24 stocks advanced, 23 stocks declined, and 1 stock remained unchanged.
Today’s closing is above daily Pivot at 11,919.35, weekly Pivot at 11,813.4 and 200 DEMA at 11,297. Stochastic is at 80.01 in the overbought zone, RSI is at 71.07 while MACD is still above zero with a bullish crossover. Like we already mentioned in our earlier analysis also, 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 11,981,12,000, 12,050 and 12,100 while as support levels are at 11,955, 11,905, 11,855, 11,843, and 11,814 for intraday. Looking at current immediate support and resistance levels the next day trading range seems to be between 11,800 to 12,100.
On the Options side, Put writing was seen at 11,800, and 11,900, 11,950 and 12,000. Call writing was seen at 12,050, and 12,150 levels while Call unwinding was seen at 11,850, 11,900, 11,950, and 12,000 indicating the shifting of support and resistance levels upside and bullish bias. Looking at the Open Interest data and the PCR at 1.28, the market range seems to be in 11,850 to 12,050 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!
