Markets witness corrective phase, but important supports intact

resr 5paisa Research Team

Last Updated: 10th January 2024 - 08:42 am

Listen icon

Our markets started Tuesday’s session on a positive note following positive cues from the global markets. However, the indices gave up the intraday gains in the later part of the day and Nifty ended the day above 21500 with marginal gains while the Bank Nifty index ended with a loss of about half a percent.

We had a positive opening based on global cues, but the indices were corrected in the later part of the day. The RSI oscillator on both the Nifty as well as the Bank Nifty index has given a negative crossover recently from the overbought zone and the FIIs too have reduced their net long positions from 70 percent to 62 percent in the last few sessions. However, they bought index futures in Tuesday’s session and their positions are not long heavy here, indicating further room for long formations. The current down move indicates a corrective phase in the index, but since the important supports are still intact in the Nifty, it should be seen as a correction within an uptrend. The immediate support for Nifty is placed around 21500-21450 followed by the 20 DEMA support which is placed around 21370. It would be crucial to see if we see any buying interest again as the index approaches the support zone around the average. In the options segment, 21700 call options have seen rise in open interest and hence, that would be seen as the immediate resistance for next couple of sessions. Traders are advised to avoid aggressive longs until we see signs of a resumption of the up move and one should have a close tab on the index movement in 21400-21370 zone.
 

Take Charge of Your F&O Investments!
Discover strategies and Trade in F&O the smart way!
  • Margin Plus
  •  FnO360
  • Rich Data
  • Derivatives Strategies
+91
''
 
By proceeding, you agree to our T&Cs*
Mobile No. belongs to
hero_form

Futures and Options Related Articles

Time Decay

by Tanushree Jaiswal 30th May 2024

Open interest data hints at a consolidation in index

by 5paisa Research Team 27th Feb 2024

New record for Nifty as index surpasses previous high

by 5paisa Research Team 19th Feb 2024

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.

Open Free Demat Account

Be a part of 5paisa community - The first listed discount broker of India.

+91

By proceeding, you agree to all T&C*

footer_form