It was a fantastic day to gain ffom the market after many days. It gave unexpected rise and all round buying from participants lead to market at comfortable zone above psychological level of 17000 & 200 days moving average too. After announcement of hike in repo rates by 50 basis points as expected by market punters. A good move started and zoomed towards northward direction. It gave decisive closing. Both nifty and Bank Nifty engulfilled last two red candles. But on weekly chart, it has formed a Hammer kind pattern with low upper shadow, a small body with long lower shadow which indicates reversal of market trend.
Despite on weekly chart, The index has fallen for the third consecutive week , down 1.3 percent.
The Nifty opened moderately lower at 16,798 and fell to a crucial support level around 16,750 amid volatility but after the policy announcement, the index gained strength to hit an intraday high of 17,187 in the afternoon. It closed at 17,094 after defending 16,750-16,800, the crucial support area.
"After a sharp selloff, the Nifty took support near 16,800 and bounced back sharply & above 17200, 17400 can be a next stop. Range of nifty would be 16800- 17400 for immediate time frame. India vix also settled in bull's favour ( 19.97).
The further decline in volatility also brought the bulls into their comfort zone. On The day of the October series, We have seen maximum Call open interest at 17,000 strike followed by 17,500 strike while the maximum Put open interest was seen at 16,000.-- 16500
Bank Nifty range would be 38250- 39250.
Both indices has formed a bullish engulfing candle on a daily chart but on weekly chart it has formed a Hammer indicates trend reversal.
Mood has been changed and hope for better time ahead.. 💐