It is advisable to be optimistically cautious at the current juncture. The Nifty has formed a Doji pattern on the daily chart which indicates that momentum, to some extent, is fading away.
A sustained trade above 10,800 may induce a rally towards 10,950-11,050 where the index may once again face resistance
The maximum put open interest buildup of more than 35 lakh & 50 lakh shares at 10,500 and 10,200 put strikes, respectively, should provide strong support to the Nifty
The Nifty has reached a support level and may see some pullback rally from these support levels once the election uncertainty is over.
The short-term momentum indicator that has been showing negative divergence has triggered bearish crossover. Thus, a top seems to be in place at the recent high of 10,941.
Going forward, any decisive move below the 10,525–10,440 zone will open the door to a retest of 10,000 – 9,950
In the coming sessions, derivative data suggests 11,000 will act as crucial resistance for Nifty as call writers were seen active in 11,000 strike, whereas on downside 10,700-10,500 will be major support
The next target for the Nifty is placed at 11,089 which happens to be 61.8 percent retracement level. Oscillators and indicators have also been showing strength on the daily charts
Dinesh Rohira of 5nance.com advises traders to remain selective and use the rally to book profit
Level of 10780 – 10700 will act as an immediate support whereas on the higher side, 10990 – 11070 will be a near-term resistance for the index.
On the options front, heavy addition is seen in 10800 CE (8.43Lakh shares) and 10700 PE (12.91Lakh shares) which suggests the November Nifty expiry is expected to be within 10700-10800.
On the technical front, 10,600-10,620 spot levels is a strong support zone for the index and the current trend is likely to continue towards 10,800-10,850 levels.
On the weekly price chart, the Nifty index formed a solid bearish candlestick pattern coupled with the small bearish pattern on its daily price chart and therefore indicating a negative trajectory.
On the options front, a highest open interest is seen at 10,700 CE which means it would be hard for bulls to take Nifty above 10,700, said Rupak De of Bonanza Portfolio.
In current trend, higher targets expected for the week are at around 10835-10900 levels. Nifty can take support at 10550/10600 levels for the week and we may see resistance at 10850/10900 levels, says Mustafa Nadeem of Epic Research.
The first logical resistance comes at 10,880, which happens to be 50 percent Fibonacci retracement of the entire downswing seen from 11,760, says Vinay Rajani of HDFC Securities.
has surpassed important resistance of 25,900 levels and closed above the same which is a positive development, says Hadrien Mendonca of IIFL.
A decisive move above 10700 may induce a rally towards 10830 whereas on the lower end breakdown below 10400 may induce weakness in the market, says Rupak De of Bonanza Portfolio.
10620-10700 spot levels are next immediate hurdle for the Nifty while 10400 will act as support, says Shitij Gandhi of SMC Global Securities.
We believe that, short term trend in the Nifty is still bullish and it is likely to find support around 10,400 odd levels.
Given a strong rebound in the last session to hold above 10,550 levels, the immediate resistance for the index is placed at 10,616 levels followed by 10,690 level and support is seen at 10,450 levels.
A retest of the crucial support placed around 10,000 indicates negative market sentiment.
The overall data has turned negative and more weakness can be seen in the expiry week.
We expect Nifty to continue within a broader range of 10,100-10,700 in the near future and either side decisive breakout would trigger the next directional move.
Short-covering is expected to limit the downward swing till expiry, and hence it will be advisable to remain cautious and remain stock specific