Nifty opened the week at 9587.95, made a high of 9700.7,
low of 9543.55 and closed the week at 9665.8with a gain of 145 points 1.5%). Nifty made a highest closing above previous
3 weeks closing.
Options data for July series indicate highest Call
Open Interest is at the strike of 9700 and highest Put build-up has shifted
upwards and is at 9500.
FIIS were net sellers in Indian Market and DIIS were
net buyers.
Global Indices
ended on a mixed note.
Nifty made a gap-up opening on first day of the week ,
made hammer type candle, closed above previous 5 days closing and closed above
20 day moving average with the gain of 94 points. Nifty broke down-trending channel. On Tuesday Nifty made a counter attack bear
candle after two days bull candle. Bulls
managed to protect Counter attach bear on Wednesday. On Wednesday Nifty traded in narrow range and
made a Harami Candle suggesting an indecisive action. On Thursday
Nifty made a highest closing after 21 days after the all-time high of 9709.3 on
6th June. Action formed a
bull candle with a larger upper shadow indicating selling at the higher
levels. On Friday, Nifty made a lower
opening and made doji inside the previous day indicating indecision.
Last week we discussed a series of symptoms of weakness
of the market. But the confirmation was not happened. I have mentioned in my last week post “By looking at the OI data and daily Oscillator,
market will be range bound to positive in the coming days. So a major fall is not expected in coming
week. Protecting Friday's low of 9448.75
is crucial for bulls for further upmove”.
Nifty protected Friday low, started to make higher high in daily time
frame, managed to close above 20 day moving average. Nifty made 252 points against 261 points down
move, retraced almost 100%.
Resistance for Nifty lies in the zone of 9700 to 9750 where the
index has formed a double top pattern. Also
the highest open interest built up in 9,700 strike, which means that this level
will offer a strong resistance and unwinding of 9700CE OI, can lead more
bullish move with a target of 9800 to 9900 level.
No comments:
Post a Comment