The market has been slippery and sliding to say the least !
We’ve had some amazing volatility from last week with big trend days and even bigger intra day swings to the long side as well as the short side.
Yet after all, tomorrow’s session may be the most important session for the Nifty in a while !
Have a look :
The 6000 level as pointed out in the chart (red horizontal line) will be the last hope for buyers tomorrow.
Beyond that there is a small level of support at 5945 NF which may not hold this time and the Nifty can see 5905- 5865 next.
From the profile point of view, we have seen two rejections of values so far outside the 5085-5245 NF bracket. Today’s upmove got rejected at the centre of this bracket at 5164 regions.
Prior to this, the upmove above 5248 to 5313 NF was rejected and the move previously to 6006 below the 5085 zone was rejected.
Today’s close is the second attempt to close below that bracket and may find acceptance also, as the selling has been strong.
I generally don’t look at spot prices when I trade, but the magnitude of the event forced me to take a look at spot prices to take out the noise in the premium between the two.
On watch is 5978 spot tomorrow.
Girish’s Open Interest analysis has so far thrown 6000 PE as a very important support for the market. It has the largest Open Interst which is considered a very big support.
But one close look at the Open Interest table will tell you that there was a larger addition at 5900 than at 6000 PE today. In itself it has a story to tell.
Before closing one look at the Bank Nifty :
12225 is the last line of support below which a minor 12100 can give a small support.
The Bank Nifty can target 11730 on the downside below 12225.
It will if nifty gets to 5900.