And where is Nifty heading on tomorrow with Option Series expiring on 14 Nov 2019?
Nifty opened with a gap up of 55.1 points at 12,021.1.
It continued profit booking for the next 1hr-10 mins making today’s high at 12,021.4. The Market touched the lowest of the day at 11946.85. Nifty gained 46 points closing the day at 12,012.05. Some of the key factors which drove the market up were: Finance Minister Nirmala Sitharaman said the government will put in Rs 10,000 crore in the recently announced alternative investment fund (AIF) while State Bank of India and LIC would provide Rs 15,000 crore, and continuous buying of FIIs. Nifty made Dragon Fly Doji at the end of the day on the daily chart suggesting bullish bias. Today, the DIIs were the net seller with -635.59Cr and FIIs were the net buyers with 926.6Cr. From the Nifty 50 stack, 30 stocks advanced and 20 stocks declined.
Today’s closing is above daily Pivot at 11,939.73, weekly Pivot at 11,813.4 and 200 DEMA at 11,303. Stochastic is at 77.85 in the overbought zone, RSI is at 72.53 while MACD is still above zero with a bullish crossover. If the index manages to sustain above 12,021 (today’s high) then we may see its bullish journey towards 12,100 – 12,200. The daily resistance levels are at 12,021 (Today’s high), 12,050 and 12,100 while as support levels are at 12,000, 11,981, 11,966 (Closing of 6th Nov 2019), 11,955, and 11,905 for intraday. Looking at current immediate support and resistance levels the next day trading range seems to be between 11,900 to 12,150.
On the Options side, Put writing was seen at 11,700, 11,800, 11,900 and 12,000 levels. Call writing was seen at 11,900, 12,000, 12,100, 12,200, 12,300 and 12,500 levels indicating the shifting of support and resistance levels upside and bullish bias. Looking at the Open Interest data and the PCR at 1.17, the market range seems to be in 11,900 to 12,200 for intraday with some correction and consolidation. Profit booking is expected as NIfty approaches 12,050, which may turn market volatile and choppy 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!
