On 24th September 2019 Nifty opened at 11,590, made a high of 11,655 low of 11,540 and finally closed at 11,588. Today Nifty opened flat and made a Doji at the end of the day , indicating indecisiveness.
Open interest wise maximum call open interest for the current month series is at 11,700 level, while maximum put open interest stands at 11,500. So these levels become a logical range for the market in the short term.
Nifty short term support stands at 11,500 and then 11,300 while resistance is at 11,700 and 11,800.
As we can see from the daily chart of Nifty is above 200-day moving average and 50-day moving average. And the trend on daily is sideways to up. Nifty is near to a resistance trend line and has formed a Doji here, so you need to be cautious if you are going long.
In the hourly chart, Nifty will become weak below 11,550. It will be bullish only if it goes above 11,700.
Open Interest Analysis of Nifty
If we analyze the open interest data of Nifty, it supports that Nifty range for the short term is 10,500 to 11,800.
From the graph of open interest, it is clear that 11,700 is still very crucial from the options point of view. Only if we go above 11,700 then we can see more upside. On the downside, we can see support at 11,500.
Stock Trading Strategy
- Zeel(F): Buy at 277 with a stop loss of 271 and a target of 286.
- Coal India: Buy at 199 with a stop loss of 197 and a target of 205.
- Keep an eye on VEDL, ONGC, Infratel, and Hindalco
- Positional Sell: Sell Bajaj Auto with the stop-loss of 3030 and target of 2800
Note: To get the live calls you can join our free telegram channel.
Please read the disclaimer before putting your hard-earned money.