NIFTY ON 17-05-2023
Following the previous session’s sell-off Index continued its southward journey despite a Positive opening. The strong resistance of 18447 could not be broken by the Bulls during previous trading session and consequently profit booking as well as selling continued at higher levels.
This dragged NIFTY below crucial 18200 which was the immediate support for NIFTY and as well as this level got broken Index slid further and retested the 18100 during intraday.
Selling pressure was observed in all the indices except AUTO and FMCG which closed with negligible gains of (.09%) and (.06%) while IT and METAL lost 0.89% and 0.97% respectively.
NIFTY finally closed at 18181.75 with a loss of 0.57% making a long Bearish candle on daily chart.
Technical View : (Daily Chart)
NIFTY has made a Long bearish candle which may be inferred as the indication towards further sell off.
NIFTY is moving above EMA 21, 34 and below EMA which could be taken as the indication of trend reversal from current level in short term.
RSI fell below 60 which indicates that the Index is losing the momentum. However, it may not be taken that Index has lost its momentum just because it fell below 60 as it has happened only in one session.
Support and Resistance : Daily Chart
NIFTY has support at 18152-18103 level. Below this 18074 will work as strong support for Index. On upper side NIFTY will face resistance near 18254-18281 Level. Above this 18343 will work as strong resistance.
Options Chain Analysis:
The Options data analysis reveals that huge call writing has taken place at 18200 CE 18MAY 2023 which has added more than 77 Lakh Shares today itself and thus it will work as strong hurdle for NIFTY tomorrow.
On the other hand the OI at 18100 and 18000 stand highest as 7326250 and 8589250. Hence this level will work as strong support for tomorrow.
View for Traders:
Having a glance at the factors which impact Indian Equity Markets we find that:
F&O FII DII GLOBAL TECHNICAL INDICATORS CONCLUSION
NEGATIVE POSITIVE NEGATIVE NEUTRAL NEGATIVE SESSION WITH HIGH VOLATILITY
So, we have 3 Negative factors, 1 positive factor and 1 neutral factor. Concluding these factors, we can say that there are high chances that tomorrow’s session may be a highly volatile one as Bears will try to breach 18100 and Bulls will try to reclaim 18200.
Tomorrow is the weekly expiry and hence one must keep an eye on 18150. If Index successfully defends this level then there are high chances that Index will march towards 18200-225.
However, any violation of this level will drag index towards 18050.
Hence, the probable trading range for tomorrow’s session seems to be 18075-18250.
Hence, for tomorrow’s session it will be lucrative to Sell NIFTY in the range of 18200-225 with SL of 18250 for a target of 118150-125.
NIFTY can be bought in the range of 18100-125 for target of 18175-200. SL may be put below 18075.
SL must be put for all the trades whether it is on the long side or the short side as the levels may or may not be respected.
Picks for tomorrow
1. BRITANNIA INDUSTRIES
Buy in the range of 4600-4610
Target 4660
SL 4580
2. JUBILANT FOODWORKS
Buy in the range of 477-479
Target 1 488 Target 2 497
SL 470
Following the previous session’s sell-off Index continued its southward journey despite a Positive opening. The strong resistance of 18447 could not be broken by the Bulls during previous trading session and consequently profit booking as well as selling continued at higher levels.
This dragged NIFTY below crucial 18200 which was the immediate support for NIFTY and as well as this level got broken Index slid further and retested the 18100 during intraday.
Selling pressure was observed in all the indices except AUTO and FMCG which closed with negligible gains of (.09%) and (.06%) while IT and METAL lost 0.89% and 0.97% respectively.
NIFTY finally closed at 18181.75 with a loss of 0.57% making a long Bearish candle on daily chart.
Technical View : (Daily Chart)
NIFTY has made a Long bearish candle which may be inferred as the indication towards further sell off.
NIFTY is moving above EMA 21, 34 and below EMA which could be taken as the indication of trend reversal from current level in short term.
RSI fell below 60 which indicates that the Index is losing the momentum. However, it may not be taken that Index has lost its momentum just because it fell below 60 as it has happened only in one session.
Support and Resistance : Daily Chart
NIFTY has support at 18152-18103 level. Below this 18074 will work as strong support for Index. On upper side NIFTY will face resistance near 18254-18281 Level. Above this 18343 will work as strong resistance.
Options Chain Analysis:
The Options data analysis reveals that huge call writing has taken place at 18200 CE 18MAY 2023 which has added more than 77 Lakh Shares today itself and thus it will work as strong hurdle for NIFTY tomorrow.
On the other hand the OI at 18100 and 18000 stand highest as 7326250 and 8589250. Hence this level will work as strong support for tomorrow.
View for Traders:
Having a glance at the factors which impact Indian Equity Markets we find that:
F&O FII DII GLOBAL TECHNICAL INDICATORS CONCLUSION
NEGATIVE POSITIVE NEGATIVE NEUTRAL NEGATIVE SESSION WITH HIGH VOLATILITY
So, we have 3 Negative factors, 1 positive factor and 1 neutral factor. Concluding these factors, we can say that there are high chances that tomorrow’s session may be a highly volatile one as Bears will try to breach 18100 and Bulls will try to reclaim 18200.
Tomorrow is the weekly expiry and hence one must keep an eye on 18150. If Index successfully defends this level then there are high chances that Index will march towards 18200-225.
However, any violation of this level will drag index towards 18050.
Hence, the probable trading range for tomorrow’s session seems to be 18075-18250.
Hence, for tomorrow’s session it will be lucrative to Sell NIFTY in the range of 18200-225 with SL of 18250 for a target of 118150-125.
NIFTY can be bought in the range of 18100-125 for target of 18175-200. SL may be put below 18075.
SL must be put for all the trades whether it is on the long side or the short side as the levels may or may not be respected.
Picks for tomorrow
1. BRITANNIA INDUSTRIES
Buy in the range of 4600-4610
Target 4660
SL 4580
2. JUBILANT FOODWORKS
Buy in the range of 477-479
Target 1 488 Target 2 497
SL 470