Nifty formed a bullish candle on daily chart and recovered previous days losses and rushing Towards 50 DEMA OR 18200 mark. After last six days nifty closed above 18000.
The index has formed a long bullish candle on the daily charts making higher high higher low formation for the third consecutive session indicating the possibility of further uptrend in coming sessions. Hence, if the index extends its uptrend and decisively closes above 50 DEMA (day exponential moving average - 18,097) then there could be a possible move towards 18,200-18,300 levels, with crucial support at 17,900-17,800... The rally was driven by FMCG, technology, oil and gas, select banking and financial services and auto stocks. 17950 could be a better support as of now.
India VIX was down by 2.87 percent from 15.02 to 14.59 levels, making the trend more favourable for bulls. If the VIX falls below 14 and sustains below the same, then there could be more stability in the market as per past experience. Volatility was high and both side movements possible in tommorw session too. The maximum Put open interest was seen at 17,900 strike, followed by 17,800 strike, which are going to be crucial support areas for the market, with meaningful Put writing at 18,000 strike and then 17,900 strike. The above Option data indicated that 17,850-18,200 levels could be an expected trading range for the Nifty50 for coming sessions....
The bank Nifty has formed a Long Legged Doji sort of candle on the daily scale as good recovery was seen from lower levels. "It has to hold above the 42,000 mark to make an up move towards 42,500 and 42,750 levels, whereas supports are placed at 42,000 then 41,750..Bank nifty saw a recovery in the second half of the session and closed with gains of 68 points at 42,235. Contributed to nifty to go up... Trend has been changed to bullish for now. It should sustain for some time to strengthen bull run.
Signing off for the day 💐