Having tested the crucial resistance level of 9450, Nifty may reach a level of 9600 points sooner than expected as the Indian markets are poised to scale new highs from the record levels they reached yesterday.
Nifty which had a gap up opening on Thursday, as it continued its optimism from the previous trading session, and posted a new high of 9450.65 points in the morning trades, may reach the levels of 9600 points quite soon and therefore traders are advised to trade with positive bias and adopt a stock-centric approach, Angel Broking said in a couple of research notes.
“The Nifty continued its optimism and posted a new high of 9450.65 in the morning trades. However, the index failed to extend this rally after reaching the mentioned intraday hurdle of 9450. Although Nifty came off a bit from the high, there is no major damage done in terms of its price structure. We continue to remain upbeat on the market and expect projected level of 9600 (target of ‘Bullish Flag’ pattern) quite soon,” Sameet Chavan (Chief Analyst- Technical & Derivatives) said in a research note.
You may also like to watch:
“Today, FIIs formed mixed positions in index futures; wherein shorts are relatively higher than longs. However, they continued to buy in stock futures, index call options and went short on index puts. At the same time, FIIs started their buying streak in equity cash segment from last three sessions; wherein they were net buyers to the tune of Rs. 1307 crores in today’s session, which is something to cheer for the Bulls,” Jay Purohit (Technical and Derivative Analyst) said in a research note.
Angel Broking expects Nifty to find support between 9377 points and 9400 points in today’s trading session and to trade between 9300 points and 9500 points in the upcoming week.
“For the coming session, we expect 9400 – 9377 to provide a decent support for our market,” Chavan added in his note.
“The highest open interest remains intact at 9500 call and 9300 put options, which should be the trading range for the forthcoming week. The PCR (OI) has also increased in the last couple of sessions (from 1.14 to 1.26); but, that is mainly due to short covering in call option and fresh put writing, which certainly bodes well for the market,” Purohit added in his note.