Nifty has a potential to protect the lvl of 17777, trend is bullish and close above 17900 may lead to 18100.
Nifty extended gains for the second consecutive day followed by positive Asian mkt cue.
The rally was across sectors, with all around buying from all participants.
The index formed a decent bullish candlestick pattern on the daily charts. If it closes decisively above 17,820, the Friday's high, and sustains in following sessions then 18,000-18,100 on the Nifty can't be ruled out in the near term, with crucial support at 17,400-17,500.
On the higher end, 17,900 has acted as resistant and 17777 may be the support for nifty in a short term.
The trend will likely remain positive as long as the index sustains above 17777 On the higher end, a move above 17,900 may induce a rally towards 18,100 and higher.
A drop in volatility also supported the rally. India VIX, which measures the expected volatility in the market, declined to 18.80 levels.
If volatility drops below 18 and sustains, bulls can have upper hand in coming sessions.
On options front, the maximum Call open interest was seen at 18,000 strike followed by 18,500 strike, while maximum Put open interest was seen at 17,500 strike followed by 17,000 strike.
The data indicates an immediate trading range between 17,500 and 18,000
The Bank Nifty also opened gap up and hit an intraday high of 41,677.
"Now it has to cross and hold above 41,500 levels to continue the positive momentum towards lifetime high of 41,840 and 42,000 levels, while on the downside, support is seen at 41,250 followed by 41,000.
Tomorrow is a fed meeting and hence US and European markets are jittery and it also impacts to our market too. Secondly, future price of nifty is quoting in discount and Fiis have sell position in the market.
If US market remains positive, our market will continue upward journey, otherwise it may go in consolidation phase...
So, it's all about fed outcom.
Signing off for the day 💐