Nifty Analysis Week ended 31 May 2019

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Hello Friends,

Last week on 23rd May Nifty touched it's all time high of 12041 and shaded all gains due to profit booking. These week as well, nifty did not broke it's last week's trading range.
During the week, Nifty traded in the range of 11800 & 12040.

Let's look into weekly and daily charts for analysis...

Weekly Chart:


We can see selling pressure at 12000 to 12050 levels, which has pushed nifty below 12000 for 2 weeks in a row.
On the weekly Chart nifty have formed inverted hammer pattern for this week.
This week's range becomes support and resistance and sustainable breakout will be important to see further trend.


Daily Chart:


Bears have managed to push nifty for negative closing for 3 out of 5 trading sessions.
Nifty movement has been range bound between 11800 and 12050.
RSI, an important indicator is neutral.
5 DMA continues to provide support on daily chart.

Options Chain Analysis:
For 6 June weekly expiry option chain, 
  • 11800 Put strike has addition of 326,175 contracts with highest open interest of 1,478,100
  • 12000 Call strike prices has highest open interest of 2,110,575 which includes addition of 838,425 contracts.
  • 12100, 12200 and 12500 Call strike prices has maximum OI
Conclusion:
  • For next week, we can expect range bound to bearish movement
  • On the upside, if 12050 is taken out with sustainable momentum for further rally
  • On the downside if 11800 is broken, Bears will come in action and further selling pressure can be see.
  • Global factors / news will be also important to watch out

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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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