And where is Nifty heading to with new weekly series expiring on Oct 17, 2019?
Nifty started the day with a good gain of 87.15 points with day’s high at 11,462.35. Nifty could not sustain above 11,463.85, which is a strong resistance level on the daily chart, thus causing a fast sell-off limiting the daily gain to 87.15. NIfty closed at 11,428.30 making a Bullish Candlestick on the daily chart. Today, the DIIs were net buyers with 929.39Cr and FIIs were also buyers with 436.02Cr. Total 38 stocks advanced and 12 declined from the Nifty50 stack.
Today’s closing at 11,428.30 is above the daily Pivot at 11,350.55, weekly Pivot at 11,252.70. The Index has got multiple layers of resistance to cap the upside on the daily and 60 minutes charts. MACD is still above zero with a bearish crossover.
The daily resistance levels are at 11,463 (61.8% Fib of recent low), 11511.18, 11565.40 (78.6% Fib of recent low), 11607.80. The support levels can be seen from the Nifty Daily chart at 11521.15 (38.2% Fib of recent low), 11,301.45, 11,275.06, 11,232, 11,182 and 11,137.
New Put writing was seen at 11,300,11,350, 11,400 levels, and Call writing was seen at 11,450,11500 and 11,600 shifting support and resistance levels broader side indicating more volatility in this 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 11,250 and 11,600. The PCR @EOD at 1.41, which indicates the bullish 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.