INSUBCONTINENT EXCLUSIVE:
By Rohit Singre Senior Technical Analyst, LKP SecuritiesWhere we are: Index closed a week at 11,725 with mild loss of 30 points and formed
hanging man kind of candle pattern on weekly chart suggesting indecision in the markets
Its seems bulls have taken pause at the moment as index is unable to give decisive close above its lifetime high on weekly chart and we
witnessing a selling pressure from higher end.
What is in store: Index is trading in narrow range of 11,550-11,850 zone since five
consecutive weeks, current sluggish chart structure shows the index is badly in need of a breakout above 11,860 zone for fresh up move on
the other hand we may see strong selling pressure if index managed to breach 11,550 zone on the downside
On the options front, Maximum Put Open Interest is at 11,000 followed by 11,500 strike while maximum Call open interest is at 12,500
followed by 12,000 strike
Option band denotes a broader trading range in between 11,500 to 12,000 zone.
What could the investor do: We may see acceleration in the
ongoing optimism once Nifty manages to surpass above recent highs
Current chart structure looks sluggish and investors are advisable to remain light on positions
Some of the technical picks where investors can catch dips for 10-15 percent return in short term with keeping stop out levels below 5-7 per
cent from current close are DMart, NHPC, Bharat Forge, Hero MotoCorp and Tata Motor etc
