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Friday, May 17, 2019

Market ready to form short-term bottom ahead of exit poll results - economic news of india - world economic news - economics news for students - indian economy news

Market ready to form short-term bottom ahead of exit poll results
By Chandan Taparia The Nifty50 remained highly volatile throughout Thursday’s session and traded in a wide range between 11,140 and 11,280 levels. The index formed a bullish candle on the daily scale as it managed to regain the losses of the previous session and closed above crucial hurdle at 11,250.The index formed a Harami pattern and a narrow range Three Bar formation on the daily scale, which indicated that a small follow-up could lead to a short-term bottom ahead of exit poll and election outcome related volatility. Now, it has to hold above 11,250 to extend its bounce towards 11,333 and then 11,420 levels while on the downside support is seen at 11,188 and then 11,118 levels.On the options front, maximum Put open interest was at 11,000 followed by 11,500 while maximum Call OI was at 12,000 followed by 12,500. There was Call writing at 11,300 followed by 11,500 while Put writing was seen at 11,000. The option band signified a trading range between 11,000 and 11,500 levels.India VIX fell 1.01 per cent to 28.37 level. However, a higher VIX suggests volatile swings could continue in the market ahead of election outcome.Bank Nifty managed to hold above 28,500 and witnessed sharp recovery from lower levels in the latter part of the session towards 28,950 level. It formed a bullish candle on the daily scale. Now it needs to hold above 29,000 to extend its move towards 29,250 and then 29,500 levels, while support exists at 28,500 and then 28,388 levels.Nifty futures closed positive at 11,301 with a gain of 1.10 per cent. Long buildup was seen in Tata Global, Tata Chemicals, Just Dial and Titan while shorts were seen in Petronet LNG, RBL Bank, IndiGo and Apollo Hospital.(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)
Source: ET