And where is Nifty heading to with new weekly series expiring on Oct 17, 2019?
Nifty started the day with a good gain of 30.85 points and built the momentum till 2.30pm touching the days high at 11,420.45. Nifty could not sustain above 11,416, which is a strong resistance level on the daily chart, thus causing a fast sell-off limiting the daily gain to 36.1. NIfty closed at 11,341.15 making an indecisive Doji on daily chart. The part success in the US-China trade deal had created good hopes for bulls making a higher high and higher low candles for the day. Today, yet again, the DIIs were net sellers with -425.15Cr while FIIs were net buyers with 895.63. Total 36 stocks advanced and 14 declined from the Nifty50 stack.
Today’s closing at 11,41.15 is above the daily Pivot at 11,25878, weekly Pivot at 11,252.70 and 200 DEMA at 11,223. The Index has got multiple layers of resistance to cap the upside on the daily and 60 minutes charts. Stochastic has moved up quickly and is at 63.95. RSI remains sideways at 54.19 while MACD is still above zero with a bearish crossover. Nifty is under the consolidation phase, and it needs strong domestic and international cues to cross 11,400 level decisively to continue its bullish journey towards 11,463 and subsequently 11,500.
The daily resistance levels are at 11,345, 11,390, 11,416 and 11,463 (61.8% Fib of recent low). The support levels can be seen from the Nifty Daily chart at 11,321, 11,300, 11,278, 11,165, 11,232, 11,182, 11,137, 11,090, 11061.65 (61.8% Fib Level from recent high) and 11,000. If Nifty breaks below 11,182 on closing and the sustainable basis on the daily chart it may revisit old low at 11,061. Looking at current immediate support and resistance level for the next trading day seems to be from 11,200 to 11,450.
New Put writing was seen at 11,100,11,200, 11,300 levels, and Call writing was seen at 11,400,11500 and 11,600 shifting support and resistance levels broader side indicating more volatility in the coming week. 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 11,200 and 11,500. The PCR @EOD remains neutral at 0.99, which indicates the continuation of consolidation mode.
Technical analysis with a sound understanding of the market is the key to trading success, however, sometimes, unexpected (domestic or international) factors make the technical analysis go haywire for a while. Market forces are stronger than our analysis sometimes, and 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.

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