Nifty highly oversold in the last week and still sustains below all major supports.
There is no thumb-rule that if the indicators are in over-sold zone then it doesn’t mean that it will give a certain bounce. When an over-sold or over-bought zone continues for a longer period then these kind of movements are inevitable. This happens not frequently and puts traders and investors in dilemma whether to take contra trade or not.
Total open interest in the market was Rs138,550 crores and Rs5,005 crore was added in open interest.
Nifty call options added 47.30 lakh shares in open-interest whereas put options added 61.87 lakh shares in open-interest.
Overall volumes in futures & options stood at 80.00 lakh contracts with a turnover of Rs195,059 crores whereas volumes in Nifty futures were marginally higher compared with previous trading volumes.
On the options front the implied volatility cooled off marginally indicating we may see some support around 4800 levels on the Nifty. But the overall bias for the market is down and it is advisable to sell on rises.
Trading Levels – 4750 << 4780 << 4860 << 4940 >> 5020 >> 5080
Nifty Hourly Chart
Nifty Weekly Chart
About the Author : Priya is the Technical Analyst and author of Analystcalls and often writes guest posts for Marketcalls.