Technical View: Awesome kinds Inside Bar candlestick, sustainable upmove seen only above 15,900

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The Nifty50 opened higher and slowly extended gains to close near 15,800 on June 24, the day of expiration for June futures & & choices agreements.

The index formed a bullish candle light and a Within Bar pattern on the day-to-day charts as it traded in the variety of the previous session.

The rally was mainly supported by IT, followed by select banking & & financials, vehicle and metals stocks, though weakness in Dependence Industries, which held its 44th annual general conference, limited the benefit.

A sustainable upmove is possible only above the 15,900- mark, till then the combination is expected to continue, experts said.

India VIX fell by 1.71 percent from 15.36 to 15.09 levels however still in 14.50 to 15.50 levels range.

The Nifty50 opened gap up at 15,737.30 and gradually extended gains in the middle of volatility to hit the day’s high of 15,821.40. The index settled at 15,790.50, up 103.50 points.

“It appears to be the day of combination on the bourses as the Nifty remarkably stayed consistent, without any volatility on expiration session, within the trading variety of a bearish candle light registered in last Wednesday’s session which resulted in a Within Bar sort of formation,” stated Mazhar Mohammad, Chief Strategist– Technical Research Study & & Trading Advisory at Chartviewindia.in.

Nevertheless, “in spite of this positive move, advance-decline ratio clearly favoured bears, hinting at wide-spread profit-booking in more comprehensive markets,” he stated.

About three shares declined for every two shares bearing down the NSE. The broader markets ended blended as the Nifty midcap 100 index was down 0.28 percent and smallcap 100 index increased 0.04 percent.

For this reason, “it stays crucial for the Nifty50 to sustain above 15,673 levels to continue sideways combination with favorable bias though strength in the index will not be expected unless it closes above 15,862 levels, he said, including the sustainable upmove is possible just if Awesome closes above 15,900 levels.

According to him, if the Nifty50 slips listed below 15,670 then bears can begin dominating by eventually pressing the index towards lower end of the broader trading variety present in the zone of 15,900– 15,450 levels.

For that reason thinking about sideways nature, Mohammad encouraged traders to remain neutral on long side however intraday shorting opportunity occurs below 15,670 for a modest target of 15,550 levels.

Since it is the start of brand-new series, the choices information is scattered at various strikes. Optimum Put open interest was seen at 15,500 followed by 15,000 strike, while optimum Call open interest was seen at 16,000 followed by 16,500 strike. Call writing was seen at 16,000 and 16,500 strike, while Put writing was seen at 15,000 then 15,500 strike.

The data shows that the Nifty50 could see a larger trading variety of 15,400 to 16,200, while an instant range might be 15,600- 16,000 in the coming sessions.

The Bank Nifty opened favorable at 34,687.70 and headed towards its previous day’s high of 34,935. Selective banking stocks kept the Bank Nifty in strength and the index closed with gains of 253 points at 34,827. It formed a bullish candle light and an Inside Bar candle light on the day-to-day scale.

“The Bank Nifty has to hold above 34,750 to go up towards 35,000 and 35,250 levels, while on the drawback, assistance is seen at 34,500 and 34,250 levels,” said Chandan Taparia, Vice President|Analyst-Derivatives at Motilal Oswal Financial Solutions.

On stocks front, he said bullish setup was seen in Infosys, TCS, Mindtree, Max Financial Providers, Asian Paints, Maruti Suzuki, Bharat Electronics, ICICI Bank, Dabur, Bajaj Finserv, HCL Technologies, UltraTech Cement and Ramco Cement. Weak point was seen in Reliance Industries, Mahanagar Gas, Apollo Tyres, REC, Petronet LNG, HPCL, Exide Industries, IOC, Amara Raja Batteries and LIC Housing Finance.

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Published at Thu, 24 Jun 2021 11:51:20 +0000