INSUBCONTINENT EXCLUSIVE:
By Rajesh Palviya Where are WeThe index has witnessed extreme volatility in last week due to domestic and global events, and the Nifty
witnessed selling pressure throughout the week
The Index has seen long built up with 5% addition of open interest
On the options front,10,600 and 10,700 was the strike witness call writing, whereas put unwinding witness for 10,600,10,500 and 10,400
strikes, which indicates that we may drift lower towards 10,400 ahead of November series expiry
This is likely to act as a good support area for the Nifty in the near term, while 10,600 and 10,700 calls have strong OI of 30 lakh and 38
lakh shares, respectively, which shows that it would act as a strong resistance.
What is in StoreOn the weekly chart, the Nifty has formed a
long bearish candle and erased gain of almost last two weeks indicating supply throughout the week.
Any follow-up selling below 10,500 would
accelerate supply pressure which can drag it towards 10,400-10,350 level in the near term.
The Nifty failed to cross 200-DMA during the week
and witnessed selling pressure from the higher level
The chart suggests that the Nifty would likely face stiff resistance around 10,700-10,750 zone for any pullback action
It is expected to trade in the range of 10,350- 10,750 in shortterm with mix bias
The daily strength indicator RSI and momentum oscillator Stochastic have turned negative from the overbought territory and are below their
respective reference lines, indicating bearishness to continue.
What Should Investors DoFor the last 5-6 sessions, the Nifty witnessed high
volatility and supply pressure on the higher side at around 10,750-10,700 levels
This resistance zone also coincides with 200-DMA and 50-DMA, hence, any decisive breakout above this supply zone will result in an upward
On the weekly chart, the index has an important support at 10,480 level
Any break below these levels can extend its down-move towards 10,400-10,350 in the near term
However, we expect the Nifty to trade in 10,350-10,750 range for the next few weeks with a mixed bias
