The weekly price action resulted in a bearish candle with a long upper shadow signalling profit booking at higher levels near 9700 levels.
The index is likely to continue with its current consolidation and oscillate between the broad range of 9750 and 9500.
Structurally, the current breather carries all the traits of a healthy corrective phase within the larger degree uptrend as the index has seen shallow price wise correction to the extent of just 38.2% of preceding nine sessions up move (9341 to 9709)
strategy
sell below 9568 for 9525 ,9480 or sell on rise with sl of 9650.
note- in CY17, intermediate corrections have not lasted more than 200 points.
Structurally, the current breather carries all the traits of a healthy corrective phase within the larger degree uptrend as the index has seen shallow price wise correction to the extent of just 38.2% of preceding nine sessions up move (9341 to 9709)
sell below 9568 for 9525 ,9480 or sell on rise with sl of 9650.
note- in CY17, intermediate corrections have not lasted more than 200 points.
Comment:
On the derivatives front, maximum Put OI was seen at strike price 9500 followed by 9600 while maximum Call OI stood at strike price 9700 followed by 9800. Significant Call writing was seen at strike prices 9600 and 9700 which suggests limited upside on an immediate basis. On the other hand, Put unwinding was seen at strike prices 9700, 9650 and 9600 which suggests a shift in support to lower zone, while Put writing was intact at strike price 9500 and it can support the market on declines during the forthcoming expiry week. India VIX moved up 3.12 per cent to 11.5575 and rising volatility from last three consecutive sessions has turned the market volatile in a broader trading range, however, only a move beyond 12.50 on IndiaVIX could signal a change in the market trend. Hence, a trading range of 9500 to 9700 levels may be established
Comment:
Trade closed: target reached
KA