NIFTY ON 25-11-2022
Opened gap up Index failed to hold 18500 during the initial hours of trade and remained range bound until the final two hours.
Except BANK, FINANCIAL SERVICES and FMCG all the Indices supported NIFTY.
AUTO and IT emerged as the leaders with gains of 0.88% and 0.53%.
Buying in RELIANCE ( 1.49%) also supported the Index in its northward journey.
Consequently Index succeeded to break the crucial hurdle of 18500 and closed at 18512.75 with a marginal gain of 0.15% making a Hanging Man kind of candle on daily chart.
Technical View : (Daily Chart)
NIFTY has made a Hanging Man kind of candle which ideally indicates the probability of trend reversal from current levels.
NIFTY is moving above EMA 21, 34 and 13 EMA and EMA 34< EMA21<EMA13 is still intact which can be interpreted as the short and mid-term positive trend is intact.
RSI at 67.18 at current level indicates that the momentum is regained by the Index.
Support and Resistance: Daily Chart
18435-18400 will work as first support level for NIFTY. Below this 18360 will work as strong support level.
18545-18600 will work as resistance for Index. As there is no further level available on the charts so one may expect that NIFTY will move towards the life time high once this level is crossed and sustained.
View for Traders:
Tomorrow may be on of the days when learning may be more fruitful than trading.
Why I am stating this???
The statement is based on the following reasons:
1. Index has remained rangebound throughout the session on 25th November 2022, between 18450-18550.
None of the forces succeeded to bring the Index out of the range. So, there is an indecisiveness among the players.
2. An analysis of option chain NIFTY expiry 01st December 2022 reveals that the highest OI on call side 67,91,600 lies at 18500 while the highest OI on Put side 62,05,200 lies at 18500. Further, below 18500 the OI on Call side is 6,81,850 at 18450 and OI on Put side is 17,45,050 at 18450.
Hence, 18500 is crucial level. If the Bulls succeeds to defend 18500 then there will be high chances that Index will move towards the life time high.
On the other hand if 18500 is not held then Index will dragged down to the first support level of 18450-400.
3. The data of FII is also not that decisive in nature based on which a certain opinion may be created.
4. Global cues are mixed as DJI is closed in Green with 0.45% while Europe has closed with marginal gains. NASDAQ has closed in Red and S&P 500 has closed in red with negligible losses.
5. Crude Oil price has cooled down.
6. Technically a Doji has been formed on daily chart which indicated the trend reversal from current levels. However, there is no diversion in RSI which indicates that Index is not tired yet.
If we analyse these factors from the point of view of Indian Markets, we find that only one factor seems to be positive which lies at No 5 and this may be the factor which will fix the further direction of Index.
Rest all the factors are indicating towards indecisiveness.
Under such circumstances, trading becomes a double edged sword.
However, if one wants to dive into trading then following strategy may be adopted with strict Stop Losses.
Hence, for tomorrow a buy call may be initiated if Index decisively holds 18500. In this case the target would be 18600 and above. SL may be put below 18450 on closing basis.
A sell call may be initiated if Index slips below 18500. In this case the target would be 18400-18350. SL may be put above 18550 on closing basis.
Sectoral View:
IT, OIL&GAS and PRIVATE BANK look strong on chart where Investors may park their money.
There may occur a trend reversal with buying opportunities in AUTO, FMCG, PHARMA, METAL, HEALTHCARE, MEDIA and REALTY.
Profit booking may be observed in PSU BANK, FINANCIAL SERVICES and BANK.
WEEKLY PICKS:
1. PERSISTENT SYSTEMS
Buy in the range of 3900-3925
Target 4200
SL 3810
Potential Upside 7.69%
2. GSPL
Buy in the range of 274-275
Target 292
SL 262
Potential Upside 6.56%
3. RBL BANK
Buy in the range of 139-140
Target 156
SL 130
Potential Upside 12.23%
4. ZYDUS LIFESCIENCES
Buy in the range of 412-415
Target 454
SL 390
Potential Upside 10.19%
5. UTI ASSET MANAGEMENT COMPANY LTD
Buy in the range of 726-730
Target 871
SL 685
Potential Upside 19.97%
Opened gap up Index failed to hold 18500 during the initial hours of trade and remained range bound until the final two hours.
Except BANK, FINANCIAL SERVICES and FMCG all the Indices supported NIFTY.
AUTO and IT emerged as the leaders with gains of 0.88% and 0.53%.
Buying in RELIANCE ( 1.49%) also supported the Index in its northward journey.
Consequently Index succeeded to break the crucial hurdle of 18500 and closed at 18512.75 with a marginal gain of 0.15% making a Hanging Man kind of candle on daily chart.
Technical View : (Daily Chart)
NIFTY has made a Hanging Man kind of candle which ideally indicates the probability of trend reversal from current levels.
NIFTY is moving above EMA 21, 34 and 13 EMA and EMA 34< EMA21<EMA13 is still intact which can be interpreted as the short and mid-term positive trend is intact.
RSI at 67.18 at current level indicates that the momentum is regained by the Index.
Support and Resistance: Daily Chart
18435-18400 will work as first support level for NIFTY. Below this 18360 will work as strong support level.
18545-18600 will work as resistance for Index. As there is no further level available on the charts so one may expect that NIFTY will move towards the life time high once this level is crossed and sustained.
View for Traders:
Tomorrow may be on of the days when learning may be more fruitful than trading.
Why I am stating this???
The statement is based on the following reasons:
1. Index has remained rangebound throughout the session on 25th November 2022, between 18450-18550.
None of the forces succeeded to bring the Index out of the range. So, there is an indecisiveness among the players.
2. An analysis of option chain NIFTY expiry 01st December 2022 reveals that the highest OI on call side 67,91,600 lies at 18500 while the highest OI on Put side 62,05,200 lies at 18500. Further, below 18500 the OI on Call side is 6,81,850 at 18450 and OI on Put side is 17,45,050 at 18450.
Hence, 18500 is crucial level. If the Bulls succeeds to defend 18500 then there will be high chances that Index will move towards the life time high.
On the other hand if 18500 is not held then Index will dragged down to the first support level of 18450-400.
3. The data of FII is also not that decisive in nature based on which a certain opinion may be created.
4. Global cues are mixed as DJI is closed in Green with 0.45% while Europe has closed with marginal gains. NASDAQ has closed in Red and S&P 500 has closed in red with negligible losses.
5. Crude Oil price has cooled down.
6. Technically a Doji has been formed on daily chart which indicated the trend reversal from current levels. However, there is no diversion in RSI which indicates that Index is not tired yet.
If we analyse these factors from the point of view of Indian Markets, we find that only one factor seems to be positive which lies at No 5 and this may be the factor which will fix the further direction of Index.
Rest all the factors are indicating towards indecisiveness.
Under such circumstances, trading becomes a double edged sword.
However, if one wants to dive into trading then following strategy may be adopted with strict Stop Losses.
Hence, for tomorrow a buy call may be initiated if Index decisively holds 18500. In this case the target would be 18600 and above. SL may be put below 18450 on closing basis.
A sell call may be initiated if Index slips below 18500. In this case the target would be 18400-18350. SL may be put above 18550 on closing basis.
Sectoral View:
IT, OIL&GAS and PRIVATE BANK look strong on chart where Investors may park their money.
There may occur a trend reversal with buying opportunities in AUTO, FMCG, PHARMA, METAL, HEALTHCARE, MEDIA and REALTY.
Profit booking may be observed in PSU BANK, FINANCIAL SERVICES and BANK.
WEEKLY PICKS:
1. PERSISTENT SYSTEMS
Buy in the range of 3900-3925
Target 4200
SL 3810
Potential Upside 7.69%
2. GSPL
Buy in the range of 274-275
Target 292
SL 262
Potential Upside 6.56%
3. RBL BANK
Buy in the range of 139-140
Target 156
SL 130
Potential Upside 12.23%
4. ZYDUS LIFESCIENCES
Buy in the range of 412-415
Target 454
SL 390
Potential Upside 10.19%
5. UTI ASSET MANAGEMENT COMPANY LTD
Buy in the range of 726-730
Target 871
SL 685
Potential Upside 19.97%