And where is Nifty heading on 27 Nov with Option Series expiring on 28 Nov 2019.
Nifty opened the gap up at 12110.2 with a gain of 36.5 points where bulls exhibited excellent power directly hitting at the strong resistance at 12,119.45. Although bulls were successful to hit an all-time high at 12,132.45 but could not sustain above 12,119.45 despite their repetitive efforts for one hour. Profit booking and new shorts at 12,000 and 12,150 levels by bears were good to pull down Nifty to days low 12,006.35, which is a strong support level. Nifty closed at 12,037.7 with a net loss of 36.05 points making a bearish candlestick but with higher highs and higher low from the previous candle indicating bullish bias on the daily chart. The FIIs were bullish today with net buying of 4677.75Cr while DIIs were the net sellers with -4242.01Cr. From the Nifty 50 stack, 18 stocks advanced, and only 32 stocks declined today of the NIfty.
Today’s closing is placed below daily Pivot at 12,040, weekly Pivot at 11,954.87 and above 200 DEMA at 11,400. Stochastic is at 65.51, RSI is at 66.14 while MACD is still above zero with a weakening bearish crossover indicating the completion of correction and the consolidation phase. Nifty’s bullish structure is still intact in the mid-term while as there may be some consolidation or correction in the short term. That is also evident from RSI divergence on the daily chart. If the index manages to sustain above 12,119, then we may see its bullish journey towards 12,190 and 12,209.
The daily resistance levels are at 12,049.35, 120,072.7, 12,088.5, 12,119.5, 12,132 and 12,160.20 while as support levels are at 12,029.32, 12,020., 12,005, 11,973, 11,938 and 11,905 for intraday trading. Looking at current immediate support and resistance levels at 60 minutes chart the next day trading range seem to be between 11,950 to 12,150.
In Option chain data, Put writing was seen at higher level 12,050, 12,100, 12,150 and 12,200 levels and fresh Call writing was seen at above 12,100 levels. Call unwinding was observed at 11,900 and 12,000 levels and put unwinding below 12,000 levels shifting smart money at higher levels. This indicates that support and resistance level are slowly shifting to the upper sides. Looking at the Open Interest data and the PCR at 1.36 for Nov 28 series and positions of various participants, the market range seems to be in the range of 11,900 to 12,200 for intraday with a bullish bias. Some profit booking may be expected as Nifty approaches 12,150, which may turn the market volatile and choppy in intraday. Strong tailwinds from domestic and international markets are the desire to propel Nifty for higher levels.
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!
