Technical View: Clever kinds Spinning Leading, 15,700 is the level to see
The Awesome traded lower for the majority of the day and closed well below 15,800 on June 29, took down by metals, car and banking & & financials stocks.
The index formed a bearish candle that resembled a spinning top pattern on the day-to-day charts. The index can fall up to 15,500 if it breaks 15,700 incoming sessions, professionals said.
Considering the sideways and directionless stage of the marketplace, traders ought to wait for a breakout in either of the instructions prior to starting an index trade, Mazhar Mohammad, Chief Strategist– Technical Research & & Trading Advisory at Chartviewindia.in said.
A spinning top is typically concerned as a neutral pattern that recommends indecisiveness in the market. It can be formed in an uptrend in addition to in a sag.
After opening flat at 15,807.50, the Nifty extended losses to hit the day’s low of 15,724.05 in the last hour of the trade. It fell 66.20 points to close at 15,748.50.
“While the wider trading range of the market seems in the zone of 15,900 to 15,500 levels, the near term pattern as hinted by the last six sessions of trading behaviour seems to be in the zone of 15,900– 15,700 levels,” Mohammad stated.
A close below 15,700 can be considered an initial sign of weak point, which can drag the index to 15,500, he said.
If the bulls manage to safeguard 15,700 on a closing basis in the next session, then possibilities of breaking out above 15,900 stay higher, Mohammad stated.
In that circumstance a greater target present in the 16,100- 16,300 zone can be expected, he said.
India VIX fell by 2.97 percent from 13.40 to 13 levels. “Lower volatility indicates an overall bullish market predisposition however little bounce in VIX could offer some unpredictable hints to the marketplace,” said Chandan Taparia, Vice President|Analyst-Derivatives at Motilal Oswal Financial Solutions.
On option front, maximum Put open interest was seen at 15,500 followed by 15,000 strike, while maximum Call open interest was seen at 16,000, followed by 16,500 strike. Call writing was seen at 15,800 and 16,000 strike, while Put writing was seen at 15,500 then 15,000 strike.
Options information indicates the Nifty might see a broader trading series of 15,500-16,200 in coming sessions.
The Bank Nifty opened negative at 35,320.45 and wandered lower to hit an intraday low of 34,913.70. It experienced weakness and profit reservation to close 349.10 points lower at 35,010.30.
The index formed a bearish candle light on the day-to-day scale and negated its greater low formation of the last three sessions.
“Now it needs to hold above 35,000 levels to go up towards 35,250 and 35,500 while on the downside support is seen at 34,750 and 34,500 levels,” said Taparia.
On the stock front, a bullish setup was seen in Marico, Apollo Hospital, Indraprastha Gas, Cipla, United Breweries, HUL, Divis Labs, Power Grid and Dr Reddy’s Labs. Weak point was seen in Cummins India, Canara Bank, DLF, ONGC, IOC, IDFC First Bank, PVR, Bata India, Kotak Mahindra Bank, M&M, Bajaj Vehicle, Havells, HPCL and Cholamandalam Investment, he added.
Disclaimer: The views and financial investment tips revealed by specialists on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com recommends users to consult qualified specialists prior to taking any financial investment decisions.Published at Tue, 29 Jun 2021