INSUBCONTINENT EXCLUSIVE:
By Rohit Singre Senior Technical Analyst, LKP SecuritiesWhere are we: Nifty closed a week on fresh highs at 12,352 with gains of 0.78 per
cent and formed a small bullish candle on the weekly chart
In contrast, Bank Nifty failed to make fresh highs and closed the week at 31,591 zone with a loss of 1.58 per cent, forming a bearish candle
on weekly chart.
What is in store: Technically, Nifty touched its upper band of the channel on the weekly chart hinting that 12,400 will act
If the index manages to sustain above 12,400 zone, the current up move could extend further towards 12,600 zone in the near term but if it
fails to sustain, we may see some cuts towards 12,200 zone which is a strong support for the Nifty
On the options front, the highest open interest (OI) concentration is seen at 12,000 PE followed by 12,200 PE creating strong support near
Any dip near these levels will be a good buying opportunity and on the higher side, the highest OI is at 12,500 CE followed by 12,400 CE
hinting that 12,400-12,500 will still act as a strong hurdle for coming sessions.
What could traders do: Current chart structure suggesting
index has stiff resistance near 12,400 zone
If it manages to hold above 12,400 zone, we may see good move upwardsand if fails to hold it, then we may see some profit booking in the
Some of the technical picks where traders can catch dips for 10-15 per cent in the short term and keeping stop loss levels below 5-7 per
cent from the current close are Alembic Pharma, Dr Reddy’s, GSPL, Sudarshan Chemical.
