And where is Nifty heading tomorrow with Option Series expiring on 07 Nov October 2019?
Monday, Nifty opened with a small gap up of 38.3 points at 11,928.90 and built up a good bullish pressure taking Nifty to days high at 11,989.15. Soon after the market went into profit booking mode taking the index to the lowest of the day at 11,905.35 filling the Novice Gap. The market remained range-bound with choppiness. Positive global cues, along with bullish move in Metal, IT, Infra and PSU BAnk sectors kept market sentiments up. The day closed with a good gain of 50.70 points closing the index at 11,941.30. NIfty remained volatile, making indecisive Doji 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 seller with -500.24Cr and FIIs were net seller with -138.5Cr. From the Nifty50 stack, 27 stocks advanced, and 13 stocks declined, reflecting a healthy structure for Nifty.
Today’s closing is above daily Pivot at 11,884, weekly Pivot at 11,813.4 and 200 DEMA at 11,278. Stochastic is at 85.3 in overbought zone, RSI is with bullish bias at 71.28 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 higher levels 11,850, 11,900, 11,950 and 12,000 while Call writing was seen at 11,950, 12,000,12,100 and 12,200 levels indicating the shifting of support and resistance levels upside and bullish bias. some call unwinding was seen at 11,900. Looking at the Open Interest data and the PCR at 1.16, the market range seems to be in 11,800 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!
