Nifty At The Edge Of A Triangle, Further Consolidation Or Breakout On The Cards

Nifty(Close 9852.5):

Nifty opened gap-up and consolidated above the hourly mid-Bollinger line.

Towards the end of the Day, there was an upsurge and Nifty closed above 9850.

Nifty Hourly Technicals:

Nifty closed at the edge of the triangle (shown in hourly chart) and may choose to consolidate further or look for an upside breakout.

On the upside, the 100-hour moving average (presently at approx. 9872.5) and 200 hours moving average (at approx. 9933 presently) may act as resistance.

On the downside, triangle barrier at approx. 9770 may act as a support.

Below this bearishness is likely to return.

Hourly CCI, Slow stochastic is in the overbought region, while hourly RSI is close to its upper-bound of the normal zone (30-70).

Hourly ADX is showing loss of momentum.

Figure: Hourly Chart

Nifty Daily Technicals:

In daily chart, Nifty is Neutral to bearish.

On the downside, the 5 days low EMA may act as support (presently at approx. 9779).

On the upside, 34 DMA (presently at 9898 approx.) and 20 DMA (presently at 9935 approx) may act as potential resistance.

The daily CCI, RSI and slow stochastic are close to lower bounds of respective normal zones, which is potentially bearish.

However, the declining ADX indicates lack of downside momentum.

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Figure: Daily Chart

Nifty Options Open Interest Analysis:

Today, both 9600 and 9700 hundred put options saw approx 5 lakh OI reduction each.

At the same time, 9950, 10000 and 10100 calls saw unwinding to a similar extent.

This indicates that the market may give a sharp move in either direction as expiry approaches.

Figure: OI Table

Figure: Nifty Tech Table

Learn to interpret the above table by watching the video below: