Nifty (8660.30, +0.40, +0.005%)
Late short covering rally coupled with fresh long positions build-up saw the index climbing 100 points from the day’s low and closing almost flat. Bulls had been back on the center stage. Open interest statistics for yesterday’s session show that call option writers covered their positions while the put writers added positions as if there were no tomorrow! The index has managed to stay above the 8630-mark for the second day in succession. Conflicting signals emerge from the trading pattern: the wild gyrations during the day showed that erstwhile short term uptrend that began from the 8270-mark lost directionality yet the addition of long positions show that bullish interest still prevails. One thing, however, remains to be seen with much less short positions outstanding coupled with huge long additions through put writing indicate that yesterday’s upward momentum must be maintained else we may see the trading pattern unfolding in reverse direction.
Late short covering rally coupled with fresh long positions build-up saw the index climbing 100 points from the day’s low and closing almost flat. Bulls had been back on the center stage. Open interest statistics for yesterday’s session show that call option writers covered their positions while the put writers added positions as if there were no tomorrow! The index has managed to stay above the 8630-mark for the second day in succession. Conflicting signals emerge from the trading pattern: the wild gyrations during the day showed that erstwhile short term uptrend that began from the 8270-mark lost directionality yet the addition of long positions show that bullish interest still prevails. One thing, however, remains to be seen with much less short positions outstanding coupled with huge long additions through put writing indicate that yesterday’s upward momentum must be maintained else we may see the trading pattern unfolding in reverse direction.
- Most critical level for the day: 8631 – 8621, its immediate support level
- Strong support: 8593 – 8580
- Strong resistance: 8693 – 8710
- Major support: 8549 – 8495
- Major resistance: 8752 – 8798
Bank Nifty (18469.30, -136.15, -0.73%)
RBI disappoints the bank bulls! No repo rate cut, no CRR cut, and not even any SLR cut! Huge rally in late session to prop up the index bypassed this sector and the Bank Nifty closed much lower by three-quarters of a percentage point. It looks weak; unless we see a significant recovery taking the index beyond the 18800-mark, this index would continue to show weakness. On the other hand, if the index were to fall below 18246 through 18188 strong support area it could see major weakness setting in. The most critical level for the day for the Bank Nifty lies between 18450 and 18490—if it were to trade below this range on sustained basis it would pave the way for greater weakness. Strength will surface only above the supply zone between 18700 and 18800 zone.
- Most critical levels for the day: 18450 – 18490
- Strong support: 18246 – 18188
- Strong resistance: 18700 – 18800
- Major support: 17960 – 17720
- Major resistance: 19140 - 19375
 Late short covering rally coupled with fresh long positions build-up saw the index climbing 100 points...){kind=link}
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