The market gave a robust punch today with super gain with realty was the best performer in today's trade. The Sensex closed above 19000 again at 19143.17, up 265.20 points from its previous close, and the Nifty closed at 5784.25, up 85.75 points. The CNX Midcap index was up 1.68% while the CNX Smallcap index gained 2.03% in Today's trade. The market breadth was positive with advances at 760 against declines of 316 on the NSE. The Bank index was up by 1.87% in todays session. Sesagoa was the highest gainer, up 5.27% in nifty 50 group while Bajaj Auto was highest looser with -1.22% in today's session.
Nifty closed with 1.5% in today's session. As per nifty Relative Strength Indicator (RSI), was placed in oversold zone since three days and now it has shown sign of recovery. However, recent price moves in todays session indicates trend reversal and strong base near 5700 and, stock may give more rise from here in near future. Nifty is in short term down trend until it is below 5850. A good Bullish engulfing Candlestick pattern has formed on NIFTY EOD chart on today's session.Prior to pattern formation this Index was in downtrend. As per slow stochastic , NIFTY was in over sold range with MACD downside cross signal. Nifty is in consecutive downtrend since five weeks.
Nifty 5700 put added 1,840,500 fresh contracts in open interest which is standing with highest open interest at 8,974,650 on the put side. While nifty 5700 call has 2962650 contracts decreasing with 254,600 fresh contracts in today's session. As nifty was up by 85.75 points and open interest added in 5700 put indicating strong reversal after continuing down trend. Put call ratio is at 0.94. Put call ratio is improving from 0.87 indicating that price may go more higher further.
Fiis bought index future worth Rs.175 cores and open interest decreased by 9317 contracts indicating that Fiis have covered their short in todays session also, but no indication of fresh buy in today's session.
Nifty was in strong down trend on both daily and weekly chart. As per price pattern It has given one of the fastest rise in todays session. 5700 put added highest open interest in todays session standing with highest number. 5700 put open interest reached at 90 lakh just after three days of new series indicating that 5700 level has formed as a strong base on the down side. As per Today's session nifty has given strong jump and index and may go in further direction till 5850-5970. As I have given indication yesterday that " nifty may take support here and may try to get ride off from oversold zone. 5760 level should watch carefully in tomorrow session. If price sustain above this level then it will kiss 5830 level very soon". In current situation if nifty continue its uptrend then it may kiss 5830-60 and if it break its todays low in then it may kiss 5630 but it chances seems further very low. Weekly chart indicating that there is still lot of down move is due in the market before any meaningful bounce. I have recommended yesterday that "Cover your short position if nifty future cross 5760. However nifty has shown very strong breakout on hourly chart and it may give further more spike from this zone. Nifty has formed a double top formation around 5970 in this down wave may create strong obstacle at higher level. Trend is now buy on dip mode in short term point of view. Untill unless nifty cross 5970 bulls can not come in full confidence.
Nifty was in strong down trend on both daily and weekly chart. As per price pattern It has given one of the fastest rise in todays session. 5700 put added highest open interest in todays session standing with highest number. 5700 put open interest reached at 90 lakh just after three days of new series indicating that 5700 level has formed as a strong base on the down side. As per Today's session nifty has given strong jump and index and may go in further direction till 5850-5970. As I have given indication yesterday that " nifty may take support here and may try to get ride off from oversold zone. 5760 level should watch carefully in tomorrow session. If price sustain above this level then it will kiss 5830 level very soon". In current situation if nifty continue its uptrend then it may kiss 5830-60 and if it break its todays low in then it may kiss 5630 but it chances seems further very low. Weekly chart indicating that there is still lot of down move is due in the market before any meaningful bounce. I have recommended yesterday that "Cover your short position if nifty future cross 5760. However nifty has shown very strong breakout on hourly chart and it may give further more spike from this zone. Nifty has formed a double top formation around 5970 in this down wave may create strong obstacle at higher level. Trend is now buy on dip mode in short term point of view. Untill unless nifty cross 5970 bulls can not come in full confidence.
Short term stoploss for long trade at 5730 spot price
Target expected - 5850 and if broken than 5970.
Target expected - 5850 and if broken than 5970.
If Stoploss hit reverse your position towards short side with sl at 5820
GOOD LUCK
