Nifty started the week on a positive note

resr 5paisa Research Team

Last Updated: 23rd May 2023 - 11:36 am

Listen icon


Nifty50 22.05.23.jpeg

Post last week’s correction, Nifty started this week on a positive note and traded with a positive bias. The index ended Monday’s session above 18300 led by support from the IT stocks. Amongst the sectoral indices, Nifty IT index has rallied about two and half percent while the Bank Nifty index consolidated within a narrow range.

During last week, Nifty witnessed a corrective phase from 18450 to 18060 and it took support around its 20 DEMA. In this correction, we did not see any fresh short formations and the market is again witnessing a positive momentum from this support zone. Thus the technical structure looks positive and it seems that the index could resume the uptrend after taking support around 20 DEMA. Market participants are concerned about the depreciating INR, but technically it is still trading within a range and a breakout above 83 will be a cause of worry then. So one should keep a close watch on the INR movement as well. The RSI oscillator on the lower time frame chart on Nifty is in ‘Buy Mode’ while if we look at the options data, 18200 put option have seen the highest OI build up in this series while highest open interest amongst call options is at 18500 strike. 

Traders are advised to trade with a positive bias till the supports are intact and look for stock specific buying opportunities from the sectors which are outperforming.
 

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