After consolidating more than 400 points, Nifty traded with strength as expected on Wednesday. However, it showed a lot of inner strength. The index opened on a marginally positive note and strengthened in the first hour of trading.
When it looked like the market was continuing with its continued growth, some gains kicked in on the anticipated lines. Nifty broke over 175 points from an intraday high point. Although the Nifty did not show any exceptional weakness, it ended the day with a net loss of 55.95 points or 0.33 percent.
The weekly option expires on Thursday and the options data is showing a mixed picture. On the one hand, a lot of Call OI open additions were seen at the level of 17,000, while the level of 17,100 had the highest Call OI. On the other hand, the strike price of 17,000 not only saw an increase in the highest put OI but also had the highest put open interest. This means that as long as there is no strategic change on both sides, the market can remain in a limited range.
Volatility declined, as was evident from India VIX falling 2.30 percent to 14.1850.
A stable but soft start is expected for the market on Thursday. The 17,100 and 17,145 levels may act as immediate resistance points, while support will come at the 17, 010, and 16,970 levels.
The Relative Strength Index (RSI) on the daily chart stood at 78.57. The RSI remains in the overbought zone. However, it remains neutral and does not show any difference in the price. The daily MACD remains bullish and continues to trade above the signal line.
A black body happened on the candle. This was the result of the market closing below its opening level. Apart from this, no other significant formation was seen. Banking stocks performed resiliently. Along with this, realty stocks also performed strongly. This is a classic case of areas that have underperformed relatively in the recent past and are trying to play catchup. This market gimmick is likely to continue for some more time.