Nifty opened on a good note today but the OI in Nifty futures were low at open today. After a quick round of profit booking, Nifty bounced back well on the back of Banknifty extending its gains, Reliance supporting well also helped a lot in the second half and the OI in Nifty futures surged yet again on the upside today clocking about 30.8 million [it was 29 million or so on open].
Now the critical barrier of 5092 is still holding out and only a close above 5092 can bolster the case of bulls. A close above 5092 will open Nifty for a retest of 5150-5177-5196. Today, for the second consecutive day, shorts were royally trapped in the last 90 minutes. A significant gap-down has been filled today after struggling for 3 sessions. Markets are not out of the woods at all but after a long time, finally some premium was restored to September Nifty futures. 5092 is a very critical level but a gap-up can change the equation for Nifty.
As of now, the upside still remains capped at 5225 levels and Banknifty has crossed over 9700 levels marginally.The close above 9700 on Banknifty opens it for a retest of 9750-9850 levels [adjusted close at 9660]. This will probably be determined by RBI action tomorrow and to a certain extent, one can say this is an artificial rise on Banknifty in anticipation of some boosters from RBI. Failure to provide the same will swiftly reverse all gains of Banknifty but weakness can only be confirmed after a close below 9500. Weakness on Nifty will be determined by a close below 4880 only.
Classical TA approach showing an inverse H/S patter with head at 4720 and hence the completion of right shoulder at 5150-5177 levels is very much on the cards. Sell on rise is the preferred strategy but with appropriate hedges as well. The real worry for the markets is the Friday factor tomorrow barring which things should be under control and Nifty complete it's logical path before going down. A close below 4880 will open Nifty for a retest of 4800 and possibly 4720 levels also.
Now the critical barrier of 5092 is still holding out and only a close above 5092 can bolster the case of bulls. A close above 5092 will open Nifty for a retest of 5150-5177-5196. Today, for the second consecutive day, shorts were royally trapped in the last 90 minutes. A significant gap-down has been filled today after struggling for 3 sessions. Markets are not out of the woods at all but after a long time, finally some premium was restored to September Nifty futures. 5092 is a very critical level but a gap-up can change the equation for Nifty.
As of now, the upside still remains capped at 5225 levels and Banknifty has crossed over 9700 levels marginally.The close above 9700 on Banknifty opens it for a retest of 9750-9850 levels [adjusted close at 9660]. This will probably be determined by RBI action tomorrow and to a certain extent, one can say this is an artificial rise on Banknifty in anticipation of some boosters from RBI. Failure to provide the same will swiftly reverse all gains of Banknifty but weakness can only be confirmed after a close below 9500. Weakness on Nifty will be determined by a close below 4880 only.
Classical TA approach showing an inverse H/S patter with head at 4720 and hence the completion of right shoulder at 5150-5177 levels is very much on the cards. Sell on rise is the preferred strategy but with appropriate hedges as well. The real worry for the markets is the Friday factor tomorrow barring which things should be under control and Nifty complete it's logical path before going down. A close below 4880 will open Nifty for a retest of 4800 and possibly 4720 levels also.
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