MARKET SUMMARY: – Indian Benchmark index nifty open at 9960 and extended the previous week losses by -175 points and stands at 9788.60 on WoW basis. Nifty made the weekly low of 9687.55 but trim some losses on account of derivative expiry and technical pull back.
TECHNICAL COMMENTS:- On daily Chart, Nifty formed the rectangle pattern and price closed above the 100 days SMA of 9777. RSI stands at 38.52 and MACD is trading below the signal line. In the coming week if nifty holds above 9685 it may take resistance at the level of 9890-9990 on the upside, whereas nifty below the level of 9685 may correct further to the level of 9640-9570 in the downside.
Nifty has intraday resistance at 9805-9850-9890.
Nifty has intraday support at 9764-9730-9700.
Ø Nifty fut closed at 9800.55 with the nominal gain of 33.75 pts on Friday session.
Ø Nifty fut open interest increased by 8.63 %
Ø Nifty Sep. fut closed at a Premium of 11.95 pts against a Premium of -2.15 pts.
Ø India Volatility Index is 12.49 vs. 13.17decreased by -5.22%.
In Call Options: – We have seen highest increased of open interest at strike price of 9900 and 10100 level respectively. While witnessed shredding of highest open interest in strike price of 9800 level.
In Put Options: – We have seen highest increased of open interest at strike price of 9600 and 9700 respectively. While witnessed shredding of highest open interest in strike price of 10100 and 10000 levels.
Global financial market have a busy week with lots of market data to be outcome, May keep on volatility in action.
BOTTOM LINE: – Nifty may trade in the range. Traders are advised to remain bullish till it sustained above 9685 level. Busy week with full of market data and monetary policy may keep volatility on high. Interest rate decision will be the key stimulus to the falling market. In absence of this market may retest the level of 9685 and below this sharp correction can be witnessed.