The Nifty failed to hold on to morning gains on Friday and closed somewhat greater From its previous close making a spinning top type of pattern on the everyday graphs on Tuesday, ahead of the market vacations. The market will remain closed on Thursday due to Balipratipada and will open for a Wednesday evening business hour for Laxmi Pujan. The indicator which opened with a little gap on the higher side failed to hold on to the momentum and closed only 6 points higher at 10, 530 on Tuesday. It hit an intraday high of 1060 and a low of 10, 491, but then the bulls managed to push the indicator above 1050 towards the close.
Bulls and bears locked horns in trade on Tuesday. A definite trend will emerge if the index breaks above 1060 on a final base or break down below 1044 this week, suggest experts. The Nifty continued its consolidation style since it signed the session off with a Spinning Top kind of creation ahead of long holiday. In this procedure it also generated market signs on reduced time frame graphs, Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory,
Therefore, other advantages for time being will Be capped around 1060 6 degrees and unless Nifty decisively enrolls a breakout above the stated level, excluding sentiment is pushed muhurat session, bulls might not have a lot of land to cover on the upside. Put simply, we may expect lateral movement with a negative bias within the next few trading sessions until 1044 on the drawback is busted, he explained. Mohammad advises traders to steer clear of long side bets until Nifty enrolls a breakout above 10, 600 on a final basis. In this scenario first target of 10, 710 can be expected.
India VIX dropped down by 5.01 percent at 18.50 levels. But until it doesn’t hold below 16-16.50 zones upside appears to be capped on the market. On the options front, maximum Put OI is placed in 10, 000 followed closely by 10, 200 strikes while greatest Phone OI is seen at 10, 700 followed closely by 11, 000 strikes. Put writing is written on 1020 followed closely by 1060 strikes while Call writing is seen at 10, 700 followed closely by 10, 600. Option band suggests an immediate vary From 1045 into 1065 zones for November expiry. The Nifty index opened favorable, but witnessed selling pressure within last hour of the trading session and also managed to settle above 1050 zones. It formed an indecisive Candle on the daily scale as follow up is missing on both sides, as it has been consolidating between 1045 0- from past three trading sessions, Chandan Taparia, Derivatives and technical analyst at Motilal Oswal Securities . The indicator has to continue to hold over 10, 450 areas to extend its up move towards 10, 650 -10, 750 areas while on the underside several supports have been seen at 10, 450 then 10, 380 levels, he explained.