And where is Nifty heading to with new weekly series expiring on Oct 17, 2019?
Nifty witnessed good profit booking in Banks, NBFCs, Metal, Auto and IT sectors after a good gain of the previous day. It opened the gap down with a loss of 19.95 points at 11,280.50 and kept on losing strength slowly till the end of the day closing at 11,234.55 with a net loss of 78.75 points. The day’s low touched 11,208 with some buying and short covering at that level and got final support at 23.6% Fibonacci level from recent high. the US-China trade uncertainty keeps the market on hooks apart from investors being cautious and booking profit before Q results are announced. The daily chart reflects an in-candle consolidation with bearish Harami pattern. The DIIs were net buyers with 502.67Cr and FIIs were net sellers with -263.11Cr. Total 15 stocks advanced and 35 declined from the Nifty50 stack.
Today’s closing at 11,234.55 is a tad below the daily Pivot at 11,241.68 but above weekly Pivot at 11,295.77 and 200 DEMA at 11,222. The Index has got multiple layers of resistance to cap the upside on the daily and 60 minutes charts. Stochastic has shown cross over in the oversold zone at 32.55. RSI remains sideways at 50.77 while MACD is still above zero with a bearish crossover, however. Nifty has reversed near the golden (61.8% retracement) Fibonacci level but needs strong domestic and international cues to continue its bullish journey towards 11,463 and subsequently 11,695.
The daily resistance levels are at 11,280, 11,300, 11,321, 11,350, 11,390, 11,416 and 11,453 (23% Fib recent high). The support levels can be seen from the Nifty Daily chart at 11,232, 11,182, 11,137, 11,090, 11061.65 (61.8% Fib Level from recent high) and 11,000. If Nifty breaks below 11,061 on closing and the sustainable basis on the daily chart it may revisit old low at 10,670. Looking at current immediate support and resistance level for the next trading day seems to be from 11,090 to 11,392.
New Put writing was seen at 11,100,11,200 levels, and Call writing was seen at 11,300,11400 and 11,500 shifting support and resistance levels downside again. Looking at the Open Interest data at various strike rates along with the strike shifting forces indicate the possibility of the next trading range between 11,090 and 11,392. The PCR @EOD has decreased to 0.89 from 1.08, which indicates a neutral stance with bearish bias.
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