Technical View | Nifty forms bullish candle ahead of F&O expiry, experts say 17,450 is the level to watch
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Nifty firmly exceeded important obstacles 17,450 after seven days of consolidation closed a percent higher on March 30 in positive global cues. The index remained strong throughout the session after opening at 17,468. It reached a total of 17,522 and low 17,387 before closing 173 points higher at 17,498.
It formed a small bullish candle in the daily chart before expiration of futures contracts & options for March but seemed to show several types of doubts between Lembuk and Bears It is important for the index to maintain 17,450 levels in the upcoming session, because it can push the index in a short-led rally towards 17,900-mark, experts said.
The decrease in further volatility also supports Bulls. India Vix fell 3.24 percent to 20.61 level “In the expiration session, it looks important for the index to maintain above 17,387 levels to maintain bullish bias,” said Mazhar Mohammad, founder & head of the market strategy in ChartviewIndia
If Nifty managed to maintain above 17,450 levels for more than an hour on March 31, the day of expiration, it can push a short cover rally. In the scenario, “the target greater than 17,900 cannot be ruled out in the next few sessions,” he said If the index closes below 17,387-17,343, it will once again encourage Bears, said Mohammad. For that moment, if someone was old, they had to hold on to the termination below 17,387 and look for the initial target of 17,800.
Given the consistent reverse for the third day, the direct trading range for Nifty, indicated by the data option, moved to 17,250-17,700 from 17,000-17,500 At the front of the option, the open flower maximum call was seen at 18,000 strikes followed by a 5,500 strike, while the maximum placing open flower was seen at 17,000 strikes followed by a strike of 16,500 Writing a small call was witnessed at 17,600 strikes then reached 17,550 strikes while writing at 17,400 strikes then 17,500 broke down.
Bank shares
Banking shares play a big role in the rally. Bank Nifty opened a gap at 36,242 and rose above 36,400 Heavyweight private banks pushed movement in the index, which was closed 487 points at 36,334. The index formed a small bullish candle on a daily scale near the 50-day EMA level (an exponential moving average of 36,315).
“Now it must apply above 36,250 levels, to move up 36.600 and 36,750, while support can be seen at 36,000 and 35,750 zones,” said Chandan Taparia, Vice President | Derivatives in Motilal Oswal Financial Services On the front stock, positive setup seen in Mindtree, Adani Enterprises, Zee Enterment Enterprises, Bajaj Finserv, SRF, IRCTC, Consumer Products, Power Grid Corporation, Bajaj Finance, Grasim, Cholamand Investment, DLF, L & T Technology Services, Axis Bank and ICICI Bank. Weaknesses are seen in Ongc, Nalco, Aurobindo Pharma, ITC, Tata Steel, Tech Mahindra, HPCL, Sail, Biocon and Titan.
Nifty firmly exceeded important obstacles 17,450 after seven days of consolidation closed a percent higher on March 30 in positive global cues. The index remained strong throughout the session after opening at 17,468. It reached a total of 17,522 and low 17,387 before closing 173 points higher at 17,498. It formed a small bullish candle…