Saturday, March 18, 2017

Nifty view for the week starting 20th March

For last 3-4 weeks we have been writing about the new bull run once Nifty closes beyond 8960.
The much awaited penetration of Nifty in the new uncharted territory has begun on 14 March after the election results of UP were declared.
On that day Nifty gaped up by almost 160 points. At the close of this week Nifty is trading near 9160.
We can safely assume that a new run of upward momentum has started in Nifty. How to trade this momentum can be debatable. This is because Nifty has gaped up and is still trading near all time high without the gap being filled up.
We can expect this gap to be filled up sooner or later. There is a good amount of open interest increase in Call Options for strike price of 9200. It means that call writers are not willing to let Nifty go beyond this point easily.
Be patient, let Nifty correct. It has good support near 8990. That would be good level to enter long positions.

Below is closer as well as a larger view of Nifty both on Weekly time frame-