Nifty Analysis Week ended 17 May 2019

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Hello Friends,

As mentioned in previous Weekly analysis, this is high volatility period for Indian Markets.
Overall volatility (India VIX) continued at higher levels.
Let's look at this week's Nifty Chart Analysis...

Weekly Analysis:

Nifty traded sideways between 11300 and 11100 levels for 4 days during the week.
On Friday nifty managed to break 11300 on upside and closed just above 11400.
During the week, nifty touched low of 11108 and manged to touch high of 11426 levels.
Weekly Bullish Candle shows a long wick at the bottom indicating strong support zone around 11100 to 11000 levels.

However, FIIs were on the selling side thorough out the week.




Daily Chart Analysis:



On daily chart, nifty took support of it's 100 DMA around 11100 levels which is also around Fibonacci Level of 61.8% of previous up move.
Prices have managed to break 4 day's range but closed just inside Ichimoku Cloud.

Options Chain Analysis:
  • Weekly Option expiry and Election results are scheduled for same day that is 23rd May.
  • 23rd May expiry Options chain shows highest open interest at 12000 Call (720,075) & 11000 Put (454,275).
  • There is option writing around 4 Lakh contracts for the almost each strike prices between 11000 and 12000.
  • Options are very expensive for this expiry series.
Conclusion:

  • High volatility to continue.
  • We can expect heavy price fluctuation within wide trading range amid elections outcome for next week.
  • Nifty moving above 11400 can see further upside.
  • On the upside 11530 - 11570 may act as resistance.
  • 11100 may be looked as important support level, break of which can put further selling pressure.
  • Trader must follow Stop loss levels very strictly.


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Disclaimer: I am not SEBI Registered analyst. All above analysis are just for study purpose.
I am not responsible for any gain or loss arising out of trades taken based on the study shared above.
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Location: India

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