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A move above 11,945 can take Nifty to 12,280

Recent swing low of 11490 will the key pivotal level for the market.

ET CONTRIBUTORS|
Nov 04, 2019, 07.32 AM IST
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Crossing above 11945 expect rally to continue towards all-time high of 12103 and then 12280 levels.
Ashish Chaturmohta

Head – Technical And Derivatives, Sanctum Wealth Management


Where we are: Last week market started on a positive note and then tapered towards the end of the week. The Nifty closed higher by 2.27 per cent at 11,891 levels on weekly basis. Broader market also chipped in with gains as BSE MidCap Index outperformed the benchmark with a rise of 3.11 per cent while BSE SmallCap ended higher by 2.18 per cent for the week.

What is in store: On daily chart Nifty has formed back to back small body doji (opening and closing are around the same levels) candle, indicating indecisiveness in the market. But on the higher time frame i.e. weekly chart, index has formed a long-body bullish candle indicating broad trend remains up after the decisive breakout above 11700. Thus, some profit booking can be seen if Nifty is unable move past 11945 levels.

Crossing above 11945 expect rally to continue towards all-time high of 12103 and then 12280 levels. However if it touches below 11820 levels, expect the market to correct towards 11650-11700 levels which was the earlier resistance zone and it will now act as support. Recent swing low of 11490 will the key pivotal level for the market.

What you could do: In Nifty November monthly expiry options, maximum open interest for Put is seen at strike price 11600 followed by 11500; while for Call maximum open interest is seen at 12000 followed by 11800. Nifty Put-Call option distribution data is suggesting a range between 11600 and 12100 levels. India VIX closed higher by 0.98 per cent at 15.73 levels for the week. VIX is facing resistance at 17 and seeing reversal; further decline will be supportive for the market. However, crossing above 17 may cap the gains for the market. On the stocks front Bajaj Finserv, SRF, Muthoot Finance, Axis Bank, Inox Leisure look poised for further upside from current levels.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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