Podcast | Stock picks of the day: A close below 11,274 could fuel further downside in Nifty50
On the daily charts, the index is trading near its immediate support level of 11,274 (50-DMA). Any violation of this level will trigger further downside towards 11,170 and 11,075 levels.
Bears made a strong come back this week on Dalal Street with Nifty50 ending the Tuesday’s session with a cut of around one and a half percent. The index breached its crucial 11,300 mark.
Investor sentiment was largely battered by subdued global cues and sharp fall in Indian rupee. The markets started the session on the pessimistic note and Nifty 50 continued its fall below 20-day moving average and closed at 11,287.50 down by 1.32 percent.
It formed a strong Bearish candle on the daily scale. A negative sequence of lower tops and lower bottoms in Nifty as per hourly scale suggests that the short-term trend has turned in favor of the bears.
On the daily charts, the index is trading near its immediate support level of 11,274 (50-DMA). Any violation of this level will trigger further downside towards 11,170 and 11,075 levels.
On the upside, the 11,400 and 11,480 levels will remain a key resistance. The Relative Strength Index (RSI) on the daily chart is 40, showing negative momentum and the MACD is trading above zero line but with the negative cross of its signal line, which indicates that price may come down further in upcoming trading sessions.
The volatility index ended up by 0.84 percent at 15.33. An increase in VIX suggests limited upside and a consolidated down move in the market.
On the Options front, maximum Call open interest (OI) of 46.87 lakh contracts is seen at strike price 11,800, followed by 11,600 which now holds 43.08 lakh contracts and maximum Put open interest of 42.94 lakh contracts is seen at strike price 11,400, followed by 11,000 which now holds 39.64 lakh contracts.
As per the options data, the support and resistance levels for Nifty is shifted lower compared to last week and the immediate support is seen around 11,400 and 11,000 levels whereas 11,600 and 11,800 will act as a strong hurdle in September expiry.
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