Indian market witnessed profit-taking at higher levels on Wednesday and the trend is likely to remain volatile on Thursday as well ahead of June F&O expiry.
The Nifty option distribution data is suggesting support at 10,000 and resistance at 10,500 followed by at 11,000. India VIX continues to find support around 29-28 levels after closing at 28.11 for the day.
A move below 10,270 levels will take the Nifty50 towards 10,000-9,900 levels where the support zone is seen.
If Nifty slips below the 9,600 support, selling pressure could take the index towards 9,400 levels where rising trend line support is seen.
The Nifty options distribution data is suggesting a range of 9300 and 8800. India VIX is at 35.8 and is currently consolidating at lower levels.
In the medium term, HUL should farewell as it will be a key beneficiary of the rural demand recovery and one of the least impacted companies from COVID-19 led disruptions.
Bearish Wedge pattern would be negated once the Nifty50 starts to trade above 9,600 levels on a sustainable basis. In that case, the Nifty can rally towards 9830 and 9970 levels on the upside.
The index needs to take out 9400 levels on the upside for the Nifty to negate the pattern and trend higher towards 9600-9700 levels.
On the downside, the short-term rising support trendline comes around at 8,550-8,600. A break below this is likely to see the NIfty decline towards 8,000 levels.
The congestion zone is placed at 12,272, but a close above this level could take the index towards 12,500 levels. On the downside, the immediate support is seen at 12,100 and then towards 11,990 levels.
In the Nifty October monthly expiry options, maximum open interest for Put is seen at strike price 11,000 followed by 11,200; while for Call maximum open interest is seen at 11,500 followed by 12,000.
A break below 10,637 levels will indicate a resumption of the downtrend in the market.
If the Nifty slips below 10,746, the next support is placed at 10,636. A break below 10,636 will signal a continuation of the decline and may take the index towards 10,450 levels.
The Nifty has resistance zone around 11,150-11,200 where recent highs, 200-DMA and 38.2% Fibonacci retracement of the fall 12,103-10,637 are seen.
Confirmation of the breakdown will come once the index starts to trade below 10,782. A break below 10,782 would take the Nifty towards the next support which is placed at 10,580 levels
The market has good support at 11,340-11,300 levels. But, the index needs to clear immediate resistance of 11,400-11,420 for the bounce back.
11,000 needs to be crossed on a sustainable basis for the market to move higher towards 11,090 and 11,170. On the downside, the immediate support is placed at 10,813, which is two-session low
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Watch the interview of Prakash Gaba of prakashgaba.com and Ashish Chaturmohta of Sanctum Wealth Management with Reema Tendulkar and Prashant Nair on CNBC-TV18, in which they shared their readings and outlook on the market and specific stocks.
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In an interview to CNBC-TV18's Reema Tendulkar & Prashant Nair, Ashwani Gujral of ashwanigujral.com and Ashish Chaturmohta of Sanctum Wealth Management shared their readings and outlook on the market, specific stocks and sectors.
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Watch the interview of Ashwani Gujral of ashwanigujral.com and Ashish Chaturmohta of Sanctum Wealth Management with Reema Tendulkar & Prashant Nair on CNBC-TV18, in which they shared their reading and outlook on market technicals and Futures and Options (F&O) side of the market respectively as well as specific stocks and sectors.
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Watch the interview of Ashwani Gujral of ashwanigujral.com and Ashish Chaturmohta of Sanctum Wealth Management with Reema Tendulkar & Nigel D'Souza on CNBC-TV18, in which they shared their reading and outlook on market, specific stocks and sectors.