Expect Stray Recovery, but Nifty Vulnerable at Higher Zone

Trading took place concisely on the predicted lines, with Nifty saw a strong bounce in Wednesday’s session and only got stronger and moved past 10,800 points as the day progressed.

However, the Nifty saw a selloff at higher levels in the second half of the session, and the index dragged down from the highest 250 points of the day to the negative zone. Though, the market closed with a gain of 0.10 per cent or 10.85 points.

Want to learn about the rebonds and also the possibility of selling at higher levels, then read our previous article.

Weekly Charts and Technical Analysis Indicators Affecting Nifty

The expiry of weekly options would influence Thursday’s session. The 10,800 zones continued having the highest call open interest concentration for the whole day. If the Nifty doesn’t rebound, the resistance point might shift to lower levels.

India VIX has also declined by 1.30 per cent to 29.29. The 10,800-10,880 points have become intermediate top until unless taken out convincingly.

For Thursday, 10,650 and 10,710 points will act as resistance while support comes in at 10,535 and 10,480 zones.

The RSI or Relative Strength Index recorded 59.47 on the daily chart making a fresh 14-period low, indicating the bearish trend. However, RSI stayed neutral for any divergence against the price. In contrast, the MACD remained bearish due to trading below the signal line.

Overview

Apart from the occurrence of a black body on the candles, no other formations were noticed. Nifty faced resistance and dragged off deeply after not being able to cross over 200-DMA, reinforcing the 10,876 zones as a major resistance for the Nifty.

Intermittent pullbacks can not break the trend on Thursday’s session. Nifty might remain vulnerable to high points and may see a selloff if it trends upward. Investors are advised not to make large purchases and stay stock specific.