Nifty slips sharply and falls below key intraday support; It moved very close to the 15,500 level. However, the rest of the season saw an equally remarkable change; Nifty saw itself recovering around 200 points from intraday lows. The headline index ended the day marginally lower by 37.05 points (-0.24%).
We have both weekly options expiration and monthly derivatives expiration in the next session. Heavy call writing has been seen at the 15,800 and 15,900 levels; It can keep all the expected drawbacks limited and defined. At lower levels, the highest Put OI was at 15,600-15,700 levels. This will also limit the lower back.
Broadly speaking, we can expect a session with a defined range on the day of expiry. The behavior of Nifty will be significant against the price level of 15,700. The instability continued for more inches; India VIX rose 3.48 percent to 13.6925.
In Thursday’s session, Nifty can be seen at 15,780 and 15,845 levels as resistance points. Support comes at the 15,650 and 15,580 levels.
The Relative Strength Index (RSI) is at 48.35; It remains neutral and shows no divergence towards the price. The daily MACD is bearish and remains below the signal line.
A classical hammer on candles happened. This reflects restlessness among market participants at lower levels; The hammer event between 15,500 and 15,550 marks this area as its important support zone for the near term.