The Nifty snapped a two-day losing streak and closed the weekly expiry session a tad above the vital 18,600 mark on December 8.
After opening flat at 18,571, the index traded in the 18,625-18,537 range and closed 49 points higher from the previous day’s close at 18,609.
The index formed a bullish candle on the daily charts and took support at 18,500. If the support holds in the coming sessions, then the index can march towards 18,700, experts said.
“There is no significant change in the chart structure except for the narrowing down of the trading zone. As far as levels are concerned, 18,500 is a critical level to watch for on the downside, and till it is safeguarded, there is no sign of worry in the market,” Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One said.
On the higher end, a decisive close above 18,700 will cheer the market participants. Going forward, “we reiterate to keep a close tab on the mentioned levels and keep focusing on thematic movers for better trading opportunities,” he said.
On the option front, the maximum Call open interest was at 19,000 strike, followed by 20,000 strike, with Call writing at 19,000 strike then 19,100 strike, while we have seen maximum Put open interest at 18,000 strike, followed by 18,500 strike, with Put writing at 18,300 strike, then 17,000 strike.
The data indicates that the Nifty will likely trade in the 18,500-19,000 range in coming days.
The volatility index India VIX fell 4.83 percent to 13.40 levels, giving more comfort for bulls.
The Bank Nifty opened higher at 43,142 and after initial volatility, trended upwards to hit a record high of 43,641. The banking index settled at a record closing high of 43,597, up 498 points from the previous day. It formed a long bullish candle on the daily charts.
“The bulls came back strong and knocked out the bears with full force surpassing the hurdle of 43,500 on a closing basis. The index confirms the continuation of the uptrend towards 44,000-44,600 levels on the upside,” Kunal Shah, Senior Technical Analyst at LKP Securities said. The lower-end support stands at 43,000.
The index remains in a buy mode and any dips should be utilised to initiate fresh long positions, the expert said.
The broader markets also ended higher, with the Nifty midcap 100 index rising 0.6 percent and the smallcap 100 index climbing 0.3 percent.
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