The Nifty saw its best close in 10 months on November 7 as it rebounded in the last hours of trade amid volatility on November 7, tracking positive global cues. All sectoral indices, barring pharma, supported the rally.
After opening above 18,200, the index hit the day’s high of 18,255 but squandered the gains in the afternoon to slip to the day’s low of 18,065. The Nifty, however, clawed back in the last 90 minutes to close 86 points higher at 18,203, the highest closing level since January 17.
The index formed a Doji pattern on the daily scale as the closing was near the opening level, indicating indecisiveness among the bulls and the bears about the future market trend. It, however, made higher highs and higher lows for the second consecutive session.
The index is expected make a gradual move towards 18,350, the highest level of 2022, soon, with support at 18,000-17,900, though intermittent volatility can’t be ruled out, experts said.
“On the daily chart, the index has remained above the previous swing high, suggesting ongoing uptrend. The momentum indicator RSI is in a positive crossover. Over the short term, the trend may remain bullish, with a potential to reach towards 18,300-18,600,” Rupak De, Senior Technical Analyst at LKP Securities said.
On the lower end, support is at 18,000, the expert added.
Om Mehra, Technical Associate, Choice Broking, said once the Nifty sustains holds 18,350, the rally can extend to 18,500.
“Indicators such as RSI and MACD are showing some strength to lead towards upside in the daily chart,” Mehra said.
Also read: Gainers & Losers: 10 stocks that moved the most on November 7
The market also got support from falling volatility. India VIX, which measures the expected volatility in the market, fell 0.44 percent to 15.59.
On the options front, the maximum Call open interest was at 19,500 strike followed by 19,000 strike, with Call writing at 18,200 strike then 19,000 strike. The maximum Put open interest was at 17,000 strike followed by 18,000 strike, with Put writing at 18,200 strike then 17,100 strike.
The data indicates that the Nifty may trade in the range of 18,000-18,500 in the near term.
Banking index
The Bank Nifty opened nearly 500 points higher at 41,741 and traded in the green through the session. It closed 429 points higher at 41,687 and formed a smal-bodied bearish candle on the daily charts.
The index would remain in buy mode as long as it will hold the support of 40,800 on the downside. “The index once breaches above 42,000 will see a sharp short covering move on the upside towards 43,000-44,000 levels,” Kunal Shah, Senior Technical Analyst at LKP Securities said.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
