Friends, before going to chart analysis need to take an overview of global clues. The Russia-Ukraine crisis is cooling off and parallelly commodity prices are coming down. USDINR hitting a lifetime high, but the CRUDE price is under control. FIIs are not ready to stop their selling however DIIs defending the same. Some are positive and a few are negative things going on. That is the reason market is volatile in day trading. If we look for positional then the market is positive and made a bottom in short term. The reason is commodity prices are cooling off.
NIFTY 50: Index was in a downtrend from April 2022, falling from 18000 to 15200. Before the 5-6 trading session it has given breakout to important resistance of 15900 and went up to 16250. These 15900 to 16250 ranges were gap down and as expected Nifty shown profit booking from the same levels. Recently it has tested its support 15900 and confirmed a new Higher Low. Now Nifty is again ready for 16250 with short-term support of 15800. For 16500/16700 need cross levels of 16250 then we will see rapid moves.
We have discussed the chart, if we look at the weekly option chain then data looking for both sides. On the call side long build-up happened till 16500 which means option buyers are bullish. On the other hand, all nearest put premiums show a short build-up that is also a bullish signal.
Overall market looking positive as per fundamentals, chart, and options data.
BANKNIFTY: The index showing strength but needs to cross important levels of 35500/35800 for more up moves. It is still trading in a downtrend. As per the weekly options data trend is not clear as both sides are a short build-up done. We have to wait for a breakout and clear trend as per option data.
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Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.
