On the technical aspect, the three days of continuous buying spree indicates the market uptrend, wherein the key indicators have also turned bullish
By Sameet Chavan
The domestic market soared after the RBI’s bi-monthly monetary policy announcement that met street expectations maintaining the status quo. A strong bullish sentiment poured across sectors that uplifted the benchmark index Nifty 50 to settle the day on a firm note. The index has surged nearly a percent and closed a tad above the 17600 mark.
The benchmark index has settled the day above its major exponential moving average on the daily chart showing inherent strength. On the technical aspect, the three days of continuous buying spree indicates the market uptrend, wherein the key indicators have also turned bullish. As far as levels are concerned, the base for Nifty inched higher to 17500 followed by 17300 on an immediate basis. On the flip side, as the market gains momentum, the recent swing high of 17800 should easily be tested and any breach above the same could direct the index towards the psychological junction of 18000.
The broad-based buying has been witnessed across the bourses, wherein the significant benefactors were from the BFSI and Metal spaces. The volatility index has cooled off by another 4 odd percent, which is a sign of diminishing uncertainty. However, the volatility from the global peers should not be ruled out and accordingly, the market needs to be approached.
There was no major change in OI was seen in Nifty, but long formations are visible in Bank Nifty. FIIs remained sellers in equities whereas they changed their stance in Index futures as along with short covering they also created long formations. For the coming weekly expiry, highest build up in CALL option is seen at 18000 strike before that resistance can also be seen at 17800 CALL. On the flip side, highest build up is seen at 17400 PUT indicating any minor dips are likely to get bought into.
(Sameet Chavan is a Chief Analyst-Technical and Derivatives at Angel One. Views expressed are the author’s own. Please consult your financial advisor before investing.)
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