RBI disappointed the investors But It gave a hint to possible rate cut in next meeting. As I have written yesterday in my previous post that range will break today. But The down side is very limited. Investors may use this fall to grab nifty. Todays fall of nifty seems impulsive in nature but My trading psychology says that fall is limited. 38.2% retrecment comes at 5586 and 50% comes at 5530. Market may reverse from any of these levels, and you may see this month 5950 - 6000 levels also. Your DIWALI could be fine this year. But you may see 3600 level till next DIWALI also. Gap at 3600 level Attracting bulls. Trend is sell on Rise any close above 5690 can change the bearish view.
Nifty 5700 call Added 1703850 shares in open interest.
nifty 5600 call added 1176850 shares in open interest and 5600 call added 578900 shares in open interest. Nifty 5500 Put standing with highest open interest at 4477800.
As per Nifty option open interest data indicating that 5500 level is strong base for nifty. Almost 50% open interest added in 5600 put then call indicating that Nifty May touch 5635 level in tomorrow session. Next strong support will come around 5535-5545. Tomorrow will be last session of October month so session will be important also.
Technically Nifty has closed below 34 days Exponential Moving averages. As I have indicated in my last post that Nifty has given closing below 13 days exponential moving averages which is negative sign. Today Nifty has given closing at 5597 which is two week low closing and bearish engulfing pattern has formed on nifty daily charts.
Conclusion after putting all points:-
Nifty may fall to 5530 level which I have been saying already since so many days. Downside is limited.
Use all fall to grab nifty for the target of 5950. If you are my old viewer then you would have remember that I have written in my earlier post that after closing above 5217 ''which was LOC level'' on monthly basis you will never see 5200 level again. Hope you will never see 5200 level again this year.