Moneycontrol Be a Pro
Get App
Last Updated : Nov 10, 2019 03:50 PM IST | Source: Moneycontrol.com

Further upside in question as Nifty forms Doji on weekly charts, RSI shows negative crossover on daily scale

The major trend seems to be positive as the Nifty is making higher highs - higher lows on the weekly scale, but Doji formation after five weeks of gains and negative crossover of RSI indicator on the daily scale is a cause of concern for the investors.

Moneycontrol Contributor @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Chandan Taparia

The Nifty managed to surpass its previous day’s high and rallied towards 12,034 mark in the first half of the session on November 8. However, the index failed to hold on to 12,000 levels and drifted sharply towards 11,888, forming a Bearish Candle on the daily scale, while forming a Doji Candle on the weekly scale for the week ended November 8, 2019.

The major trend seems to be positive as the Nifty is making higher highs - higher lows on the weekly scale, but Doji formation after five weeks of gains and negative crossover of RSI indicator on the daily scale is a cause of concern for the investors.

Close

The index has managed to stay above its support placed at 11,850 but has seen some major hurdles beyond 12,000 zones.

Now, it has to continue to hold above 11,850 zones to witness an up move towards 12,021, then 12,103 levels, while on the downside next major support is seen at 11,700 zones.

The India Volatility Index, India VIX, moved up by 0.83 percent from 15.73 to 15.86 levels on November 8. On the monthly options front, maximum Put OI is at 11,600 followed by 11,500 strike, while maximum Call OI is at 12,000 followed by 12,300 strike. We have seen Put writing at 11,900 and 11,700 strike, while Call writing is seen at 12,300 followed by 12,200 strike. The Option data suggests a broader trading range in between 11,800 to 12,100 zones.

Bank Nifty relatively outperformed the benchmark index and extended its gains towards 31,100 zones. It gained nearly 400 points on an intraday basis on November 8 but failed to hold on to its gains and closed near 30,750 levels. It formed a Shooting Star candle on the daily scale while Bullish Candle with higher highs - higher lows on the weekly scale. The support levels are gradually shifting higher, and now it has to continue to hold above 30,400 zones to witness an up move towards 31,000, then 31,250 levels, while on the downside support is seen at 30,250, then 30,000 zones.

We see stock-specific positive setup in ICICI Bank, Kotak Mahindra Bank, Voltas, Bajaj Finserv, Jubilant Foodworks, Eicher Motor, IGL while weakness is seen in Oil Marketing Companies and selective PSUs.

(The author is Associate Vice President | Analyst-Derivatives at Motilal Oswal Financial Services)

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.
First Published on Nov 10, 2019 03:50 pm
Loading...
Follow us on
Available On