Nifty : Nifty last week closed with substantial gains of 1.12%, and saw an overall volatility of 402 pts, VIX closed below 13.5, lost 7.3%. The Nifty remained volatile with a trending move during the week, closed positive above 18500 (spot). Volatility in the index remained trending during the week and breakout moves witnessed. Set up in the index remained neutral with positive bias, last week Nifty opened with gap down on Monday with reversal seen from Wednesday and mostly upward with breakout on Thursday & sustainable gains on Friday, with closing near weekly high but with avg volume reported during the last session. Going ahead, the structure and texture of the market turned neutral and a possible new ATH could be on the chart on upside. The index largely stays time b/w 18300-400, with breakout above 18400 sustained during the closing of week. While on a daily time frame 18450 on a closing basis may remain crucial for the week. As per weekly option data, the highest OI buildup on PE is at 18300 followed by 18500, OI on CE at 18500 followed by 19000, whereas 18500 remains as the max pain point with combined premium of approx 173 pts in total of OI 130 lacs both in PE&CE. In the previous week, the index gained with breakout ending narrowness. Technically, there is now a strong support around 18330/412, as long as the index hold these levels on downside, the upside trend may continue and once volume picked up upside rally may continue, we find strong buyout above 18500 levels (only) for interim target of 18770-830, on the flip side if the index falls below 18330, the uptrend may negate by traders. Last week, volatility was trending. Going ahead,the market may witness more consolidation but trending moves either way. FII tuned net sellers during last week, whereas positive numbers from DII continued to report in the previous week.
Weekly Technical Update #NIFTY50
