Nifty Overview for the week (14/5/2018–18/5/2018)?
As we mentioned last week Nifty started in positive and traded in a range for the next three days and closed above 10800 on the last trading session with the expectations of BJP winning in Karnataka. As per the charts the boundaries of resistance is cleared, but the election results is the key for further decisive movement in Nifty.
Nifty gained 1.80% Last week and DII’s infused 4700 Crores whereas FII’s liquidated 2000 Crores in Equity market. Though the broader index closed positive mid cap and small cap is still struggling to gain the momentum.
Closing above 10800 is a psychological mark and break of the trend line resistance in 4 hours chart is good for bulls. If we keep aside the election results the ongoing trend is likely to continue.
There is huge OI addition in 10700 puts last week which could be longs of the clients. The maximum Net OI in puts is located at 10500 in calls it is at 11000.
10500–10550 is the crucial support zone and that is where the medium term moving average is located. Decisive close below 10500 will take nifty to 10300/10250 region once again. Overall it’s a buy on Dips Market.
The PCR has increased from 1.49 to 1.66 and the Open Interest of Nifty Futures increased by 6.70%.