Nifty (8706.70, -43.50, -0.50%)
While the fall in the Nifty has just been half a percentage point and the late recovery from sub-8650 level suggested some probable bounce back in today’s session, the index option statistics seem to pour cold water on that since the large number of fresh call writing for 8700 and 8800 strike prices amply indicate that the weakness signs are unlikely to disappear so soon. This coupled with massive bull liquidation in the 8700 and 8800-strike Jan Nifty put options also indicate that the bulls had been on much shaky ground than they had been even a few days back. Unless the range between 8735 and 8740 gets taken out decisively, it would be an uphill task for the bulls to push things up at least from a Nifty centered perspective.
While the fall in the Nifty has just been half a percentage point and the late recovery from sub-8650 level suggested some probable bounce back in today’s session, the index option statistics seem to pour cold water on that since the large number of fresh call writing for 8700 and 8800 strike prices amply indicate that the weakness signs are unlikely to disappear so soon. This coupled with massive bull liquidation in the 8700 and 8800-strike Jan Nifty put options also indicate that the bulls had been on much shaky ground than they had been even a few days back. Unless the range between 8735 and 8740 gets taken out decisively, it would be an uphill task for the bulls to push things up at least from a Nifty centered perspective.
- Most critical levels for the day: 8735 – 8740 (upside) & 8687 – 8669 (downside)
- Strong resistance: 8778 – 8804
- Major resistance: 8849 – 8891
- Strong support: 8623 – 8604
- Major support zone: 8558 – 8523
Bank Nifty (18637.05, -79.25, -0.42%)
Here is a sector index that is not looking very weak it showed even-stevens for warring parties on both sides. If the the range between 18453 and 18410 is ably defended by the bulls then we would see some recovery worth talking about. The above support zone is very critical for the Bank Nifty since any failure to sustain above such range would invite bears to sell again afresh or otherwise. On the way up, 18900 through 19200 range would act as a major resistance zone for now; unless cleared it would nip any recovery attempt in the bud while if the support of 18450 through 18400 gets taken out then the last support, before we see sub-18000 levels, is at 18200. Any major weakness developing now would mean a test of 17600 through 17300 very strong support area.
- Most critical level for the day: 18557
- Strong resistance: 18779 – 18900
- Major resistance: 19050 – 19185
- Strong support: 18453 – 18410
- Major support: 18200 - 17990
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