After a favorable global trade setup, Nifty opened on a strong note in the session. After opening positive, Nifty got stronger as the day progressed.
In the afternoon, the index made some gains, but moves led by last-hour options expiration pulled the market down again. The headline index closed with a net gain of 191 points, or 1.23 per cent.
Few options expiry-affected moves dominated the market. The strike price 15,800 holds the maximum call open interest for the most part of the day. This led the Nifty to face resistance for most of the session at that time. The index moved above this point only after unwinding a few calls at 15,800.
Till now, the highest call OI was at 16,000 level. For the immediate short term, it will be necessary to watch the Nifty’s behavior at 15,800 level. If Nifty is able to hold its head above these points, it may try to test the crucial 15,900-15,950 zone. Failure to sustain the level above 15,800 could result in minor corrective moves.
15,865 and 15,930 levels are likely to act as resistance points for Nifty on Friday, while support will come at 15,730 and 15,680 levels.
The relative strength index (RSI) on the daily chart stood at 54.57; It remains neutral and shows no divergence against the price. The daily MACD is bearish and remains below the signal line.