IGI Logo

Below are Views On Nifty started the expiry day marginally positive and traded in a range with a positive bias for most part of the day By Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking)

Nifty started the expiry day marginally positive and traded in a range with a positive bias for most part of the day. However, the action really kicked in the last hour of the trade where initially index witnessed a dip towards 15270 and then immediately recovered sharply to mark the highest close with gains of about a quarter of a percent.

As we have been mentioning in our reports, intraday dips are getting bought and we saw a similar activity in yesterday’s session as well. The dip in the last hour due to the expiry effect got bought into and the ‘20 EMA’ on the hourly chart provided that support. The banking index which was consolidating since last couple of session witnessed a good buying interest and resumed its ‘Higher Top Higher Bottom’ structure. Thus, the index heavyweights should lead to a continuation of the advance in Nifty as well as the index looks all set to mark new records which we have been anticipating since last few days. Hence, traders are advised to continue to trade with a positive bias and avoid contra bets in this trended move. The immediate supports for Nifty are now placed around 15270 and 15225 whereas resistance is seen around 15430.

In last few days, inspite of the slow and gradual up move in Nifty, a lot of stock specific action is seen wherein the midcap and small cap names have witnessed good buying interest. Now, the banking index too looks set to cover up the recent under performance and hence, traders should continue to look for stock specific opportunities which have potential to give good returns in the short term.

Above views are of the author and not of the website kindly read disclaimer