Today's trading range must have been most narrow trading range when Nifty is at lifetime high. The difference between high and low levels for Nifty today was 41.15 points. For first time today, in last so many days, the high made in first 15 mins was not breached by Nifty throughout the trading session. Now that does not mean Nifty is showing weakness. Banknifty did same on Wednesday. It did not touch its first 15 min high till last 15 minutes. But today on Friday it closed much above that level. Please check my video posted on youtube under channel name Market Movers India for slightly more content. So the pattern is that, buying by FIIs pushes Nifty up on one day and banknifty on another. Today also FIIs were net buyers (339 Crs) and DIIs were net sellers (285 Crs). Look at low volumes. My guess is that for next few days volumes will be muted and range will be tight since holiday season has begun. So, full scale activity will be seen only after 1st January. As per final figures for yesterday, i.e. Thursday, expiry day, FIIs were net buyers in all the three segments of Equity, index futures and stock futures. So FIIs are on buying spree. According to option chain, Nifty is showing strong PUT total OI buildup at 12200 and extremely Good OI is seen at these three strikes of 12200, 12250 and 12300. On CALL side, highest total OI is at 12300 but highest fresh Call writing is at 12350. So range for next 2 trading sessions, in my opinion, should be 12200-12350.
On daily Chart, Nifty Made a small Doji candle with higher high, higher low and higher close. The RSI is at 67.45, so still not in overbought zone. MACD is still showing formation of green candles and on Bollinger band, Nifty is at upper band. And it can remain there for next couple of trading sessions. So a crash or sudden fall doesn’t seem in offing. If at all Nifty falls it will be slow and smooth. Traders will be able to see the signs. There are no clear cut levels for buying and selling in Nifty so if it comes near 12200, Buy and if it reaches 12350, Sell.
All the best. Happy trading.
On daily Chart, Nifty Made a small Doji candle with higher high, higher low and higher close. The RSI is at 67.45, so still not in overbought zone. MACD is still showing formation of green candles and on Bollinger band, Nifty is at upper band. And it can remain there for next couple of trading sessions. So a crash or sudden fall doesn’t seem in offing. If at all Nifty falls it will be slow and smooth. Traders will be able to see the signs. There are no clear cut levels for buying and selling in Nifty so if it comes near 12200, Buy and if it reaches 12350, Sell.
All the best. Happy trading.