Mazhar Mohammad said in case of market friendly outcome, indices may head towards their major resistance zone placed between 12,000-12,100
Nifty after managed to close marginally higher on May 22 ahead of Lok Sabha election results.
The index held 11,700 and formed small bullish candle that resembles a Doji kind of pattern on the daily scale.
A 'Doji' is formed when the index opens and then closes approximately around the same level. However, it remains volatile throughout the trading day which is indicated by its long shadow on either side. The candle appears like a cross or a plus sign.
A Doji usually means indecisiveness among the bulls as well as bears, hence there could be some consolidation or wild swings in either direction in coming session when general elections results will be announced, experts said.
Nifty after opening higher at 11,727.95 hit an intraday low of 11,682.40 in early trade itself and high of 11,784.80 in the afternoon. The index finally settled 28.80 points higher at 11,737.90.
"Nifty50 registered a Doji kind of indecisive formation ahead of election result day that will invite wild swings in either direction. Interestingly there was neither a follow through to the bearish patterns registered on May 21 nor continuation of euphoria on the upside suggesting caution on the part of market participants as they can be waiting for the outcome which will eventually result in a big spurt," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
He said in case of a market-friendly outcome, indices may head towards their major resistance zone placed between 12,000-12,100 on long term charts and post a short term top around these levels. Hence, he advised traders to book profits by making use of this rally.
"Similarly a negative outcome shall fill the bullish gap present between 11,591-11,426 registered on May 20. In such a scenario, downsides can be much higher with initial targets placed around 11,000," Mazhar added.
India VIX moved up 7.73 percent to 27.63. India VIX made a new record high of 30.18 which is the highest levels in the last 44 months.
Nifty options: Maximum Put open interest (OI) was at 11,000 followed by 10,500 while maximum Call OI was at 12,000 followed by 12,500. Marginal Call and Put writing activities were seen in the market.
"Now Nifty has to continue to hold above 11,666 to extend its move towards 11,888 then an attempt to hit psychological 12,000 mark while major support exists at 11,550," Chandan Taparia said.
Bank Nifty closed 218.40 points higher at 30,526.80 and formed a small Inside Bar on the daily scale and traded with the support 30,250 by respecting its hurdle near to previous swing high of 30,669.
The index formed a bullish candle and has been forming higher lows from past four trading sessions.Chandan Taparia said now it has to hold above 30,000 to attract buying interest towards 30,926 then 31,250 while next major support shifts at 29,500.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.