Nifty opened strong but profit-taking during the day trimmed gains and the index at 17,833.
Nifty formed a Bearish Belt Hold pattern on the daily chart. The pattern is formed when the opening price becomes the highest point of the day and the index declines throughout the session, making the large body. The candle will either have a small or no upper shadow and a small lower shadow.
The next hurdle for the Nifty would be 17,992, the recent swing high, whereas 17,786, the day's low, would be crucial for the downside. If that gets broken, 17,500 would be the next support as of now what chart indicates. While on weekly chart, it has formed a bullish candle.
“If this observation holds true, again it may touche 17400 lvl. To move further nifty has to cross 17992 which is the last swing high, if this happens 18120 - 200 would be the next stop. Till then don't be ultra bullish. India vix is under control at 17.71.
On the options front, the maximum Call open interest was seen at 18,000 strike followed 18,500 strike, while the maximum Put open interest was seen at 17,000 strike then 17,500 strike.
Options data indicates that in the immediate term, the Nifty can trade in the 17,500-18,000 range.
Bank Nifty opened 300 points higher but consolidated throughout the session. It ended 207 points higher at 40,416, its highest closing in the last 216 sessions.
Bnf formed a bullish candle on the weekly chart and gave its highest weekly close..
Bulls have upper hand but cautious view, we see.
Signing off for the week.. 💐