And where is Nifty heading on 20th Nov with Option Series expiring on 21 Nov 2019?
Nifty opened at 11,919.45 with a gap-up of 20 points and had a bullish mood during the day but it remained range-bound. Profit booking was witnessed during noon time when index touched 11,945 which we had already mentioned in our previous analysis for today. Nifty remained in the small range of 11,880 to 11,957 with choppiness and closed at 11,940.1 forming a bullish candle having higher high and higher low on the daily chart. The FIIs were bearish today with the selling of -915.37Cr while DIIs were the net buyers with 262.33 Cr. From the Nifty 50 stack, only 24 stocks advanced and 26 stocks declined today.
Today’s closing is placed well above daily Pivot at 11,889.4, weekly Pivot at 11,930.8 and above 200 DEMA at 11,340. Stochastic is at 56.11, RSI is at 64.03 while MACD is still above zero with a bearish crossover indicating the correction and consolidation. Nifty’s bullish structure is intact in the mid-term. On the weekly chart, Nifty has shown an in-candle formation with bullish bias indicating for some consolidation. If the index manages to sustain above 11,972, then we may see its bullish journey towards 12,100. Nifty closing below 11,800 on the EOD basis may take it towards 11,700. The daily resistance levels are at 11,945, 11,973, 11,992, 12,020, and 12,034 while as support levels are at 11,930, 11,905, 11,872, 11,855, and 11,814 for intraday trading. On an intraday chart, Nifty has broken out from the descending channel today on the 60-minute chart and can continue the journey as long as the ascending channel provides strong support. Looking at current immediate support and resistance levels at 60 minutes chart the next day trading range seems to be between 11,870 to 12,020.
On the Options, front Put writing was seen at higher levels 11,900, 11,950 and 12,000 levels while fresh Call writing was seen at 12,000, 12,150 and 12,200 levels. Some call unwinding was observed at 11,900, 11,950 and 12,000 levels indicating the shifting of support and resistance levels upside indicating bullish bias. Looking at the Open Interest data and the unchanged PCR at 1.21 and positions of various participants the market range seems to be in the range of 11,850 to 12,050 for intraday with some consolidation. Profit booking is expected as Nifty approaches 12,000, which may turn market volatile and choppy in intraday. The other inputs to impact the market are Q2 results, macro data along with domestic and international cues.
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!