Morning Nifty and Bank Nifty Update (2nd Dec 2019)
Indian equity benchmarks halted after two days of run and ended lower but recovered from the day's low on the back of buying seen in the last hour of trade. The S&P BSE Sensex fell 0.82 percent to 40,793.81 and the NSE Nifty fell 0.78 percent to 12,056. The broader markets represented by the NSE Nifty 500 Index fell 0.57 percent.
After Friday trading hour government has released Indian GDP data which is weakest in Over 6 Years at 4.5 percent year-on-year in the second quarter of 2019-20, below 5 percent in the previous period and market expectations of 4.7 percent. Figures showed the economy eased for the fifth consecutive quarter, and grew at the weakest pace since the first three months of 2013, mainly due to a fall in factory output and exports and a slowdown in investment.
Ten out of 11 sectors compiled by NSE traded lower, led by the NSE Nifty Media Index’s 2.5 percent fall. On the other side, the NSE Nifty Realty Index was the only sector to gain by 0.98 percent.
According to Open Interest Data,Maximum Call option open interest stands at 12100 ( on contract wise as well as valuation wise) and put option open interest stands at 12000( on contract wise as well as valuation wise) suggests us a very narrow trading level for the index. Below 12100 bull is likely to weaken its momentum for 12030-12000 level on the downside. Bear needs to trade below 12000 to be active. Writing in call and short covering in put option suggests weak sentiment ahead.
Last week, we have seen positive momentum in Nifty future and settled with a gain of 1.5% at 12092.90.
Now, what to expect???
Nifty future has support at 12050---11960 and resistance at 12150
Break and close above 12150 will take it to 12280---12350 and then to 12750 levels in days to come else it could test its support level of 12050---11980 levels again.
More and more downside panic will see on a close below 11980 levels only.
So traders can trade within a range and wait for confirmation.
|Intraday traders can buy Nifty future in panic around 12030---12010 with stop loss below 11960 for the upside target of 12150.|
Maximum Call stand at 32000 and Put at 31500 strikes indicates support and resistance for the index. Valuation wise call and put option data gives support around 32000. Trading below 32000 may weaken sentiments for bull and shown a profit booking for the level of 31700-31500 on the downside. PCR stands at 31500 suggests us strong support for index. Writing in call and short covering in put option suggests weak sentiment ahead.
We have seen a mind blowing rally in Bank Nifty future too as it gained more than 2.80% and finally settled around 31990 levels
Now, what to expect???
Bank Nifty future has support at 31700---30900 and resistance at 32200
Three consecutive close + weekly close above 32200 will take it to 33300---33700+++ levels in days to come else it could test its support level of 31700 again.
Close below 31700 will take it to 31500---31400 levels again. Major sell-off or reversal will see on a weekly close below 30900 levels only
We are still bullish in Bank Nifty and positional traders can go long around 31700---31500 with stop loss below 30900 on a closing basis for the upside target of 33300---33700 levels in days to come.
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