Nifty started with a positive note and marked the highest price of the day in the first hour of the day. After that, it dropped moderately negatively, comparing all the opening gains. He recovered again to trade on the green, but neither side actually made a big move. The index spent sessions within the upper bounds and ended up with a 28.60 point or 0.19 percent increase.
SBI SECURITIES rose about 11%, contributing 35 points to Nifty alone. Otherwise, the index would have been negative. Nifty’s advance ratio fell 27 times from 23 times ahead, and evenly regained calm. However, the market-wide advance payment ratio was slightly negative, with 634 advance payments falling 1,010. In the future, lower AD ratios will continue to be a concern as they will cause upward movements that lack the power needed to sustain them. Volatility has risen, with India VIX rising 1.27% to 23.4150.
The market is currently prone to some overdue consolidations or corrections. Nifty faces resistance at the 15,000 and 15,065 levels, but support is lower at the 14,860 and 14,790 levels.
The Relative Strength Index on the daily chart is 65.56. It continues to show a strong bearish divergence against prices. Daily MACD is bullish and trades across the signal line. A frame has occurred on the chart. The candlestick pattern is formed when there is little price action and there is little difference between the opening and closing prices. Its occurrence near a high point can stall any upward movement. However, this should be confirmed in the next bar.
Pattern analysis on the daily chart shows that Nifty is facing short-term pattern resistance in the form of an uptrend line drawn from the highest point before it saw a major revision move.
In the last trading session, there was significant call writing at the 15,100 and 15,200 levels. However, the maximum CallOI concentration was at the 15,000 level. This means that even if there is a further gradual rise, it is likely to be limited. Several strong sector rotations in favor of defense stocks were apparent. This can continue for some time, as the general mood is likely to be defensive. Volatility can increase in the next few days, so it is advisable to pay close attention to exposure while paying close attention.
(Milan Vaishnav, CMT, MSTA are consulting technical analysts and founders of Gemstone Equity Research & Advisory Services in Vadodara. His contact information is firstname.lastname@example.org)
Trade settings: Tends to be nifty corrections.Volatility can skyrocket
https://economictimes.indiatimes.com/markets/stocks/news/trade-setup-nifty-prone-to-correction-volatility-likely-to-increase/articleshow/80734910.cms Trade settings: Tends to be nifty corrections.Volatility can skyrocket