The benchmark #Nifty opened a gap up of 362.50 points at 8,446.30. Positive global pulled up the market and we could observe Nifty remained bullish throughout the day hitting the day’s high at 8,819.40. It closed with a net gain of 708.40 points at 8,792.20 and formed a Bullish Candle on Daily Chart. The NIfty form bullish Candle on the weekly chart as well as on the monthly chart. The market will move further upward if it gets positive cues from domestic or international markets. If the Nifty could sustain above 9,128 level on a closing basis in the upcoming trading sessions then we might see a pullback toward 9,500 and if Nifty falls below 8,446 it will continue its downward journey towards 8,000.
The FIIs, as well as DIIs both, were buyers today with a turnover of 741.77Cr and 422.51Cr respectively. The market breadth was positive with all the 50 stocks advancing from the stack of nifty 50. The closing of #Nifty at 8,792.20 is well below 200DEMA at 11,181 but above daily pivot 8,165, weekly pivot 8,273 and 13 days EMA 8,657. The daily Stochastic has increased to 35.29 and RSI is at 43.44. We may see some bounce back and consolidation in the 8,500 to 9,500 zone before the next move.
Nifty’s new resistance levels shifted upwards and which are at 8,819, 8,949, 9,039, and 9,128 while the support levels are also shifted upside and they are at 8,663, 8,588, 8,529, and 8,446. The fear gauge (India VIX) has further decreased to 51.80. With increased ATR of Nifty and Bank Nifty due to fear of uncertainty of the markets which is driving the indices volatile. The daily trading range for the next session as per the Nifty chart seems to be very wide now from 8,446 to 9,128.
#BankNifty Index also followed the broader market and closed at 11,667.75 with a gain of 779.35points making a Bullish candle on the daily chart. New resistance levels are at 19,191, 19,466, 19,716, and 20,009 while key support levels are at 18,768, 18,455, 18,162, and 17,954. The trading range for BN looks between 17,954 to 20,009 from the daily chart. The #PCR ratio for the current series (April 09) is 1.49 indicating the market is bullish.
As per Nifty #OptionChain data (April 09), Put writing was observed on higher levels like 7,700 onwards whereas Call writing was observed on 8,900 and from 9,100 onwards levels showing the support and resistance level shifting upwards. The call unwinding was observed from 7,500 to 8,600 and at 8,800 and 9,000 whereas the Put unwinding observed at lower levels like 7,600 onwards. The range is too wide on both sides indicating the possibility of huge volatility. The #PCR for the current series is 1.54 which indicates bullishness in the market. As the support is strong at 8,000 level we may witness some consolidation. OI data shows the possibility of the next trading range between 8,000 to 9,000 with volatile swings. If the market continue to get positive cues, it may mover further up from an oversold zone to cool off the indicator. As volatility is high in the market in the #Nifty and #BankNifty, so traders are advised to be careful from volatility and trade only trends with options strategies with close stops.
#Technicalanalysis with a sound understanding of the market is the key to trading success; however, 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!
