Nifty Technical ViewNifty shifted into a minor upside bounce on May 10 after showing sharp weakness in the last few sessions, settling 0.44 percent higher at 22,055.
Call writing is seen at 22500 then 22100 strike while Put writing is seen at 22,000 then 21,700 strike.
The short-term trend of Nifty continues to be negative.
“Having placed at the key trend line support, there is a possibility of a minor upside bounce in the short term.
“Nifty has formed a bearish candle on the weekly frame but is still holding on to its recent low but the upside continues to remain capped.
Nifty Technical View
Nifty shifted into a minor upside bounce on May 10 after showing sharp weakness in the last few sessions, settling 0.44 percent higher at 22,055. The benchmark BSE Sensex closed 0.36 percent higher at 72,664.
A small positive candle was formed on the daily chart with minor upper and lower shadows. “Technically, this pattern indicates a temporary pause in the market after a sharp decline. Nifty placed at the crucial trend line support around 21,900 and still there is no indication of any higher bottom reversal pattern forming at the lows,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
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On the weekly front, the maximum call OI is at 22,500 then 22,400 strike while the maximum put OI is at 22,000 then 21,600 strike. Call writing is seen at 22500 then 22100 strike while Put writing is seen at 22,000 then 21,700 strike. Options data suggests a broader trading range between 21,500 to 22,500 zones while an immediate range between 21800 to 22300 levels.
The short-term trend of Nifty continues to be negative. “Having placed at the key trend line support, there is a possibility of a minor upside bounce in the short term. But the market could eventually break down the present support of 21,900-21,850 levels and could slide down to 22,700-22,600 in the near term. Immediate resistance is at 22,300 levels,” said Shetti.
“Nifty has formed a bearish candle on the weekly frame but is still holding on to its recent low but the upside continues to remain capped. Now it has to hold above 22,000 zones for a bounce towards 22,222 and then 22,350 zones whereas supports are placed at 21,850 and then 21,700 zones,” Chandan Taparia, Senior Vice President, Analyst-Derivatives at Motilal Oswal Financial Services.
Bank Nifty
Bank Nifty opened marginally higher but remained highly volatile in a wider range of 500 points in between 47,300 to 47,850 zones for most of the session. It formed a small Bearish candle on a daily scale and is forming lower highs from the last seven sessions.
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“On a weekly scale, it formed a Bearish Engulfing pattern as sustained selling pressure was seen at higher zones and it ended with losses near 47,400 zones. Now till it holds below 47,777 zones further weakness could be seen towards 47,000 then 46,750 zones while on the upside hurdle is seen at 47,777 then 48,000 levels,” said Taparia.
The volatility index, India VIX ended 1.49 percent higher at 18.47. Volatility spiked above 19 zones at its sixteen-month high and paved a smooth way for the bears to create swings in the market.
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