INSUBCONTINENT EXCLUSIVE:
By Ashish ChaturmohtaChart pattern suggests that until the Nifty breaks below 10,700-10,660 support, the market is likely to continue its
bullishness, said technical analysts
Stocks such as ACC, Ambuja Cement, ICICI Lombard General, Chola Fin, Shriram Transport, Ujjivan and Bharat Forge could be looked on the long
3.4 per cent, respectively, outperforming the benchmark
Market breadth on Friray was positive with four stocks advancing for one declinling.
What is in Store Broadly, the market continues to trade
in the range of 10,550 to 11,100
The Nifty has seen bounceback from lower end of the range and for past one week it has been trading between 10,750 and 10,900; except for a
midweek spurt when it touched 10,940
Now, the immediate resistance is around 10,890-10,940 levels
Above this, the Nifty can rally towards 10,990 initially, and 11,117 subsequently
Confirmation of a breakout will come once index starts to trade above 11,117 on a sustainable basis
On the downside, if Nifty breaks 10,730, expect the Nifty to test lower end of the range i.e
10,585-10,550 zone.
What Should an Investor Do In Nifty options, maximum open interest for Puts is seen at strike price 10,700 followed by
For Calls, it is seen at strike price 11,000 followed by 11,500
Call writing was seen in 11,000, 11,400 and 11,500 along with Put writing at 10,900, 10,800 and 10,700
It suggests that supports are shifting higher, but the market is expected to face resistance around 11,000
Though India VIX saw a decline of 11 per cent on Friday, for the week it has risen by 5.3 per cent to close at 16.28
VIX cooling off in the latter part of the week is positive, but it needs to decline below 15 for the market to move higher
Rise in volatility will continue to keep the market in a broader range
In terms of stocks, ICICI Lombard General, Can Fin Homes, DCB Bank, Bharat Electronics Ltd and Bharat Forge Ltd can be looked on long
