Stock Market TraderThe Nifty 50 finally snapped a four-day losing streak as it recouped all morning losses and turned green in afternoon on April 19.
Story continues below Advertisement Remove AdThe Nifty 50 opened lower at 21,862 and fell up to 21,778 in morning.
On the monthly options front, the maximum Call open interest was seen at 23,000 strike, followed by 22,500 strike and 22,200 strike, with meaningful Call writing at 22,500 strike, then 23,000 strike and 22,600 strike.
On the Put side, 22,000 strike owned the maximum open interest, followed by 21,000 strike and 21,500 strike, with writing at 21,800 strike, then 21,900 strike and 21,700 strike.
India VIX, the fear index, rose 3.2 percent to 13.46 level on Friday and rallied 16.7 percent during the week.
Stock Market Trader
The Nifty 50 finally snapped a four-day losing streak as it recouped all morning losses and turned green in afternoon on April 19. More important is that the index has smartly defended the upward sloping support trendline, which coincides with around psychological 22,000 mark, and formed long bullish candlestick pattern which resembles Bullish Piercing Line pattern on the daily charts, often indicating a bullish reversal after correction.
Hence, 22,300 is the next resistance to watch for the Nifty 50 in coming sessions and if it sustains above the same then 22,500 can't be ruled out, while 22,000 is the immediate support, experts said.
Story continues below Advertisement Remove Ad
The Nifty 50 opened lower at 21,862 and fell up to 21,778 in morning. But the index managed to recover all these losses and finally settled at 22,147, up 151 points.
"On the daily chart, a Piercing Line pattern has formed. Additionally, the indicator has surpassed the 55-day EMA (22,067), a short-term moving average. A close above this moving average signifies a positive short-term trend," Rupak De, senior technical analyst at LKP Securities said.
Looking ahead, he feels bulls may drive the Nifty's recovery towards 22,300. Furthermore, a decisive breakthrough above 22,300 could trigger a sustained rally towards 22,600, he said, adding on the downside, support on a closing basis is situated at 22,000.
On the monthly options front, the maximum Call open interest was seen at 23,000 strike, followed by 22,500 strike and 22,200 strike, with meaningful Call writing at 22,500 strike, then 23,000 strike and 22,600 strike. On the Put side, 22,000 strike owned the maximum open interest, followed by 21,000 strike and 21,500 strike, with writing at 21,800 strike, then 21,900 strike and 21,700 strike.
The above options data indicated that the Nifty may find resistance at 22,200 and then 22,500 mark, with support at 22,200 and 21,900 levels.
Bank Nifty
Story continues below Advertisement Remove Ad
Banks provided good support to the Nifty 50 as the Bank Nifty itself rallied 1 percent or 505 points to 47,574 and formed big bullish candlestick pattern on the daily charts, after four days losses. The banking index recovered nearly 1,000 points from day's low.
"47,200 and 47,000 or 50-day SMA (simple moving average) would be the sacrosanct support zone for the positional traders. Above which, it could bounce back up to 48,000-48,200," Amol Athawale, VP-technical research at Kotak Securities said.
On the flip side, below 50-day SMA traders may prefer to exit from the trading long positions, he advised.
The volatility increased further and sustained above 13 level for yet another session. If it increases further then that may give discomfort to bulls. India VIX, the fear index, rose 3.2 percent to 13.46 level on Friday and rallied 16.7 percent during the week.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
