The market snapped three-day winning streak and closed the volatile session on a flat note with negative bias on December 10. But the broader markets outperformed benchmark indices as the Nifty Midcap 100 and Smallcap 100 indices gained 0.8 percent each.
The BSE Sensex was down 20.46 points at 58,786.67, while the Nifty50 fell 5.50 points to 17,511.30 and formed bullish candle on the daily charts as the closing was higher than opening levels. The index gained 1.83 percent during the week and saw bullish candle formation on the weekly scale.
"A small positive candle was formed with upper and lower shadow. Technically, this pattern indicates a formation of high wave type candle pattern. Normally, such high wave formation after a reasonable upmove or down move could be considered as a reversal pattern on either side," says Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
He further says having formed this pattern amidst a range movement, the predictive value could be less. "This could be considered as a range bound action."
He feels the short term trend of Nifty continues to be rangebound. "The lack of selling pressure at the important resistance could indicate higher chances of sharp upside breakout of the hurdle in the near term. Immediate support is placed at 17,400-17,380 levels," says Nagaraj Shetti.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks given in this story are the aggregates of three-month data and not of the current month only.
Key support and resistance levels on the Nifty
According to pivot charts, the key support levels for the Nifty are placed at 17,432.9, followed by 17,354.5. If the index moves up, the key resistance levels to watch out for are 17,562 and 17,612.7.
The Nifty Bank gained 23.25 points to close at 37,105.65 on December 10. The important pivot level, which will act as crucial support for the index, is placed at 36,902.26, followed by 36,698.93. On the upside, key resistance levels are placed at 37,231.06 and 37,356.53 levels.
Call option data
Maximum Call open interest of 32.94 lakh contracts was seen at 18000 strike, which will act as a crucial resistance level in the December series.
This is followed by 17500 strike, which holds 23.50 lakh contracts, and 17000 strike, which has accumulated 14.04 lakh contracts.
Call writing was seen at 17400 strike, which added 2.61 lakh contracts, followed by 17600 strike which added 83,250 contracts, and 17900 strike which added 62,750 contracts.
Call unwinding was seen at 17200 strike, which shed 2.14 lakh contracts, followed by 18000 strike which shed 57,750 contracts and 17300 strike which shed 57,550 contracts.
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