After 4 days of continuous ‘higher highs and higher lows’ candles (as compared to the previous day) today Nifty finished as a Doji candle with lower low and lower high. But make no mistake, Nifty is not weak yet. Consider this, Nifty open price=12349.40; Low = 12278.75; Closing price = 12343.30. The fall after opening is of 70 points and then recovery from low to closing price is of around 64 points – a loss of only 6 points! For the record, it actually hit stop loss since Nifty went well below my lower limit of buying area, before coming up. But I did keep the trade – which normally one shouldn’t. So one should still look at buying Nifty at lows. FIIs were net Buyers (279.53 Crs) and DIIs were net Sellers (648 Crs). So it’s value buying and at the same time profit booking at highs. Option chain tells us that on PUT side, highest total OI is at 12300 but highest fresh Put writing is at 12250. There is impressive OI at all strikes between 12200 & 12350. For tomorrow, based on this data, I can put support at 12300, 43 points below CMP. On Call side, there is good total OI build-up between 12300 & 12500. Highest total OI is at 12400 and highest fresh Call writing is at 12450. Tomorrow being expiry, let’s keep our resistance at 12450 since wild moves are suspected. On 15 min chart, I have marked a support and a reliable buying area if Nifty falls to these levels.
All the best. Happy trading.
All the best. Happy trading.