8,800 is likely to act as support for Nifty this week

Nifty 50 shares maintaining it’s up trend. Nifty closed the day with half a percentage profit. The major contribution has come from Banking stocks after HDFC bank’s FDI limit is enhanced. As per our analysis, Coal India & Asian Paints have reversed the trend. Hindustan Unilever and Idea are showing sign of weakness. These stocks are likely to crack down if the down trend continues.

Feb 17, 2017 Nifty 50 daily chart with RSI & MACD
Feb 17, 2017 Nifty 50 daily chart with RSI & MACD
Technical

From the technical perspective, Nifty is trading well above it’s 10 & 20 days moving average. The RSI is trading near the over brought level of 70. MACD is also showing the positive sign by trading above zero level.

Option Analysis

From the Options side, 8500 strike price Put has 5 Million open interests. There are close to one million shares are added as part of 8800 put strike price. It is likely that smart money is trying create short positions in 8800 levels.

3 thoughts on “8,800 is likely to act as support for Nifty this week

  • February 21, 2017 at 5:56 pm
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    Today 8900 Put has added 1.1 million shares as open interest. That means, will the Nifty sustain the 8800 level for this expiry?

    Reply
    • February 21, 2017 at 5:58 pm
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      Yes, it is highly likely that Nifty will sustain the 8800 levels for Feb series expiry.

      Reply

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