Snapping three-session rally, NSE Nifty on Wednesday formed a downward sloping trajectory, as the index ended with a loss of 67.65 points or 0.57 per cent.
Thursdays session is likely to remain dominated with rollovers as the market will see expiry of current derivative series.
Niftys strike price of 12,000 has the highest Call open interest built-up, followed by 11,900 strike. Call open interest built-up at these levels means that the 11,900-12,000 zone will act as stiff resistance.
Nifty is not likely to move beyond this range. The supports are expected to come in at 11,810 and 11,700 levels.
The daily RSI stood at 60.1995 and it remained neutral, showing no divergence against the price. The daily MACD continued to remain above its signal line, but it narrowed its trajectory. Apart from a black body that occurred, no other vital formation was observed on the candles.
The pattern analysis of the daily chart showed that Nifty has failed to achieve a clean breakout despite marking incremental highs on a closing basis. The 12,000-12,040 zone remains a stiff resistance area. The wider-than-usual Bollinger bands are making sure that the index stays in a range for more time.
Given the expiry of current derivative series on Thursday, we expect volatility to rise.
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