By Rajesh Palviya
Nifty closed at 17895 with a get of 277 points on a weekly basis. On the weekly chart, the index has formed a bullish candle nevertheless it has remained restricted inside the preceding week’s High-Low variety representing a brief term breather. The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 17950 level it would witness obtaining which would lead the index towards 18100-18300 levels.
However, if index breaks under 17750 level it would witness promoting which would take the index towards 17600-17400. Nifty is trading above 20 and 50 day SMAs which are significant brief term moving averages, indicating positive bias in the brief term. Nifty continues to stay in an uptrend in the medium term, so obtaining on dips continues to be our preferred approach. For the week, we anticipate Nifty 50 to trade in the variety of 18300-17600 with a positive bias.
The weekly strength indicator RSI has turned bullish along with positive crossover which signals increasing strength.
Nifty derivative outlook
Nifty futures closed at 17900, on a positive note with 5.82% enhance in open interest and price tag get of 2.11% indicating Long Build Up. Nifty annualized volatility index, India Vix, has decreased to 15.65% from 17.21% down by (-)9.05%. PCR OI at the moment is at 1.30 levels which is above the median line and in a comfy zone indicating positive bias in the industry.
Options Built up shows that for now Nifty has powerful assistance at 17,500 followed by 17,200 and 17,800 and resistance at 18,000 levels followed by 18,500 & 18,200. 17,900, 18,000 and 18,500 strike Get in touch with and 17,500 strike Put followed by 17,000 & 17,200 strike has higher open interest concentration which suggests that Nifty is probably to trade in between these levels of 18,200 on upside and 17,500 on downside for the coming week with 17,800 acting as a pivotal levels.
Bank Nifty Technical Outlook
Bank Nifty began the week with an upward gap and obtaining momentum for the most element of the week led it to close in positive territory. Bank Nifty closed at 37775 with a get of 350 points on a weekly basis.
On the weekly chart index has formed a bullish candle and remained restricted inside preceding week’s High-Low variety indicating lack of strength on either side. The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating sustained up trend on lengthy term charts. The chart pattern suggests that if Bank Nifty crosses and sustains above 38100 levels it would witness obtaining which would lead the index towards 38500-38800 levels. However if index breaks under 37500 level it would witness promoting which would take the index towards 37000-36200. Bank Nifty is trading above 20, 50, and one hundred day SMAs which are significant brief term moving averages, indicating positive bias in the brief to medium term. Bank Nifty continues to stay in an uptrend in the medium term, so obtaining on dips continues to be our preferred approach. For the week, we anticipate Bank Nifty to trade in the variety of 38500-37000 with a positive bias.
The weekly strength indicator RSI has turned positive and sustaining above its respective reference line indicating positive bias.
Bank Nifty Derivative Outlook
Bank Nifty futures closed at 37917.05 on a positive note with (-)13.60% lower in open interest and with a price tag get of 1.50% indicating Short Covering. The open interest position of FII’s in Index Futures is at Rs 11,475 decreased by (-)3,307 crore and in Stock Futures it is at Rs 1,24,695 elevated by 6,487 crore. Bank Nifty has a powerful assistance at 37,500 as 37,500 Put strike is possessing higher OI concentration followed by 37,000 & 36,000 although on the Call front 38,500CE strike has higher OI concentration indicating powerful resistance level followed by 39,000 & 39,500,although 38,000 is probably to act as a pivotal level.
Sectors, stocks to watch this week
We anticipate chemical, IT, banking, energy, telecom and automobiles to do nicely in the close to term. Stocks such as Reliance Industries Ltd (RIL), Tata Chemicals, Bank of Baroda, Canara Bank, Uflex, Nocil, HCL Technologies, Infosys, Mcdowell, Adani Port, Tata Power, Tata Motors to do nicely in close to term.
(Rajesh Palviya, VP– Research (Head Technical & Derivatives), Axis Securities. Views expressed are the author’s personal.)