Nifty (8778.30, +63.90, +0.73%)
The Nifty posts the fifth successive higher close in the wake of a very wildly gyrating trading session! Bulls continue in their domination, and today they are ably assisted by the bank stocks. After three trading sessions, the bank bulls were strongly back in action when poor fellows like us—analysts—were lamenting about the lack of participation from them. The Nifty closed at the strong resistance zone’s upper quartile. It needs to take out the 8800-mark decisively to move further up while everybody now seems to be gung ho about reaching the 9000-mark or posting a new high we need to digest things one at a time: let us first see conclusively that the Nifty takes out the 8800-mark; once that is done then we would like it to get past 8849 – 8892, the next strong supply zone. However, once the latter zone is taken out then there would be high probability of the index attempting to post a new all-time high.
There had been large scale short covering in 8000 through 8600-strike April Nifty calls in that the call option writers have bought back quite a sizable chunk of their erstwhile short sold positions here. The only exception had been the 8700-strike call where they added nearly 2 lakh units in Open Interest (OI). Interestingly, they also added over 7 lakh units in OI for the strikes 8900 through 9000. Thus, selling at higher levels in the Nifty call option market continues to happen. The Nifty put option writers did not, however, show much enthusiasm today to create fresh positions compared to the quantities they were adding in the past few days…Interesting development; in all likelihood, the last and final battle between the bulls and the bears is going to be fought in today’s session—a trading day that could really turn out to be the most significant day for this upswing.
The Nifty posts the fifth successive higher close in the wake of a very wildly gyrating trading session! Bulls continue in their domination, and today they are ably assisted by the bank stocks. After three trading sessions, the bank bulls were strongly back in action when poor fellows like us—analysts—were lamenting about the lack of participation from them. The Nifty closed at the strong resistance zone’s upper quartile. It needs to take out the 8800-mark decisively to move further up while everybody now seems to be gung ho about reaching the 9000-mark or posting a new high we need to digest things one at a time: let us first see conclusively that the Nifty takes out the 8800-mark; once that is done then we would like it to get past 8849 – 8892, the next strong supply zone. However, once the latter zone is taken out then there would be high probability of the index attempting to post a new all-time high.
There had been large scale short covering in 8000 through 8600-strike April Nifty calls in that the call option writers have bought back quite a sizable chunk of their erstwhile short sold positions here. The only exception had been the 8700-strike call where they added nearly 2 lakh units in Open Interest (OI). Interestingly, they also added over 7 lakh units in OI for the strikes 8900 through 9000. Thus, selling at higher levels in the Nifty call option market continues to happen. The Nifty put option writers did not, however, show much enthusiasm today to create fresh positions compared to the quantities they were adding in the past few days…Interesting development; in all likelihood, the last and final battle between the bulls and the bears is going to be fought in today’s session—a trading day that could really turn out to be the most significant day for this upswing.
- Most critical levels for the day: 8789 - 8800 (upside) & 8724 - 8681 (downside)
- Strong resistance: 8782 - 8810
- Strong support: 8724 - 8681
- Major support: 8632 - 8613
- Major resistance: 8849 - 8892
Bank Nifty (18416.60, -52.70, -0.29%)
After a pause on the first three days of the week, the Bank bulls are back in action with full gusto. Banks had been the weakest among all the sectors in the recent past if you leave aside the metals. Today, they started showing strength almost right from the word go. The bank index has managed to take out the resistance around 18781 quite ably backed by a lot of volume activity and fresh long position build-up as seen through good quantity April series put writing and major covering in the calls already sold earlier. Today, from a technical point of view, this index looks better placed compared to the Nifty, which did not show as much long addition as the Bank Nifty in proportion to their recent activity; of course, it is but quite natural.
If the Bank Nifty were to get past the 19000-mark and stay above 19050 through 19150 range then we could see this index doing its almost routine job of pushing the Nifty higher and higher. However, any failure to get past the 19000-mark after showing so much of a recovery in the last session would mean weakness may resurface at any point in time. It is imperative for the Bank Nifty to stay above the 18785-mark, where its 50-dEMA is located. For the Bank Nifty to remain bullish, this is the bare minimum requirement now.
- Most critical levels for the day: 18785
- Strong support: 18664 - 18550
- Strong resistance: 18990 - 19150
- Major support: 18449 - 18341
- Major resistance: 19313 - 19595
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 The Nifty posts the fifth successive higher close in the wake of a very wildly gyrating trading sessio...){kind=link}
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