Nifty is expected to move within a range as suggested by its technical indicators. Also, a high volatility is
expected to be the order of the week ahead of F&O expiry. Resistance for Nifty now seems at 5,720-
5,740 while support stands at 5,540-5,560. On upside if level of 5,720 breaches decisively then we could
see rise up to the mark of 5,800, on the lower side if level of 5,540 is breaches then Nifty could retrace
up to support of 5,500 mark. Technical indicators like MACD, RSI are also supporting its uptrend move.
MACD is showing positive divergence, crossing its signal line (9 Days exponential moving average) from
the below. RSI is at 70 level with positive divergence, which indicates positive bias may expect in the
market.
On the derivatives front the Nifty Futures prices inclined along with incline in the open interest with
incline in cost of carry indicating long position initiated at the lower level. For the coming days, 5,640-
5,650 level would act as the strong support for Nifty. There was significant short accumulation was
witnessed in ATM Put option. Most of the open interest accretion witnessed in the 5,700 put. On the
flip side squaring off was seen between 5,700 and 5,800 strike Call Option which suggests a range of
5,650-5,750 for September expiry.
3 MONTHS DAILY CHART OF NIFTY
NEWS TO WATCH TODAY
1. Gold importers stay away as prices recover
2. Cement industry is on a high, Ambuja Cement and ACC top gainers almost 4%
3. PTC, Lanco, Adani to gain from SEB restructuring.
4. Expect weekly rise or fall in Petrol prices.
