For the time being, short term trades are advised to wait for some initial signs of strength before creating fresh long side positions, says Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in.
The Nifty50 remained under pressure in the volatile session on October 3 but ended off at the day's low with Nifty ended above 11,300 level. Auto stocks remained in focus after weak September quarter numbers while Yes Bank was in action after the forced sale of pledge shares.
As long as the index sustains above 11,247 levels, a range bound move in the zone of 11,554-11,247 can be expected, experts feel.
After a negative start, Nifty50 hit an intraday high of 11,370.40, but turned volatile during the day and touched a low of 11,257.35. In late trade, the index managed to recoup some of its losses and closed 45.90 points lower at 11,313.10.
"A close above 11,370 shall be considered as an initial sign of strength for extension of the pull back move towards 11,550 kinds of levels," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, told Moneycontrol.
Contrary to this a close below 11,247 levels shall resume the downswing with downside targets placed in the zone of 11,180 – 11,080 levels which appears to be the crucial support for the current leg of upswing which is in progress from the lows of 11,080 levels, he added.
For the time ,being short term trades are advised to wait for some initial signs of strength before creating fresh long side positions, he further said.
Maximum Put OI is at 11,000 followed by 11500 strike while maximum Call OI is at 11,500 followed by 12,000 strike. Call writing is seen at 11,400 followed by 11,800 strike whereas marginal Put writing is seen at 11,000 then 11,200 strike.
Option data suggests a wider trading range in between 11,200 to 11,700 zones.
Bank Nifty formed an Inside Bar on daily scale as it traded in the range of the previous day session.
It relatively underperformed the benchmark index now till it holds below 28,750 – 28,800 zones weakness could be seen towards its swing low of 28,000 marks while on the upside hurdle is seen at 29,000 then 29,250 levels."Till Nifty holds below 11,380 -11,400 zones weakness could be seen towards swing low of 11,250 then 11,200 zones while on the upside hurdle is intact at 11,500 then 11,550 levels.," Chandan Taparia, Associate Vice President and Analyst-Derivatives at Motilal Oswal Financial Services said.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.