Holding the Option beyond a certain point in time was Dysfunctional Risk. Since the extra holding period did not give enough rewards to justify the risk of Buying the Option.
Friday's low point (17,348) can act as a support in the next session followed by crucial support at 17,150-17,000 levels, while if it crosses the near-term resistance (17,500) in coming sessions, then the index can climb towards 17,800 levels, experts said.
Federal Bank, ICICI Pru Life Insurance, Oberoi Realty among the stocks. With the Sensex and the Nifty reversing losses after the RBI decision, experts say the Nifty’s next stop could be 17,800. Banking and financial services, FMCG, IT, metal and pharma stocks supported the market.
Redington (India) saw strong buying interest and had a gap-up opening on Thursday. It climbed 9.1 percent to Rs 139.55, and formed a large bullish candlestick pattern on daily charts with significantly higher volumes.
On the weekly chart of Alkyl Amines, the prices have shown a bounce on the upside. In the prior week, prices gave a breakout from the Falling Wedge pattern which is a bullish reversal pattern, said Vidnyan Sawant of GEPL Capital
The street may maintain caution till the meeting outcome and if the index gets back firmly above 17,450, then there is a fair chance of the index moving towards 17,800 levels, with crucial support at the 17,000 mark, experts said.
Dr Lal PathLabs witnessed an ascending triangle pattern breakout on July 29 which was placed above Rs 2,250 levels in the daily time frame. After breakout, prices are showing a gradual upside movement in a small steep formation.
"What a great setup we are having at Greenply Industries -- precise bullish BAT pattern which got completed at 0.886 ratio on the daily chart with N-wave formation near the potential reversal zone of Rs 170-175."
The broader market underperformed the benchmark. The Nifty Midcap 100 and smallcap 100 indices fell 0.7 percent and 0.5 percent
Consensus earnings estimate for large-cap IT companies have been cut by 3-8 percent for the current financial year and 2-7 percent for the next financial year following the June quarter earnings season
After a long underperformance, Yes Bank prices have finally given a breakout from its immediate short term resistance which was placed around Rs 16-16.20. The stock has witnessed huge buying interest which can be seen through its high volumes.
Vedant Fashions is coming out of 6 months of consolidation with heavy volume followed by a breakout of Bullish Flag formation. However, the recent move is a little stretched therefore some pullback can't be ruled out but that will provide a good buying opportunity.
Traders should adopt a neutral stance by confining themselves to the fence, Mazhar Mohammad of Chartviewindia has said
The Nifty50 has rallied 14 percent from June lows of 15,183 to 17,340 levels on August 1. With this recovery, the rally has also broadened with midcap and smallcaps participating.
Indoco Remedies has broken out from the consolidation with jump in volumes. It has also broken out from downward sloping trendline on the weekly charts.
Stocks that were in action included Rain Industries which jumped 8.6 percent to Rs 191.35, the highest closing level since April 11, continuing uptrend for fourth consecutive session. The stock has formed bullish candle on the daily charts with significantly higher volumes
If the Nifty50 sustains above 17,150, the low of August 1, in the coming session, then 17,400 can be the next target, followed by 17,500, with 17,000-16,950 as a crucial support area, Mazhar Mohammad of Chartviewindia says
With the consistent rally and holding on to previous days' low points, the support for the Nifty has also shifted higher to 17,033, followed by 16,950 levels
Technical indicators are giving positive signals as Info Edge is trading above the 20 and 50 days SMA and there also recently a positive moving average crossover as the 20 days SMA moved above the 50 days SMA.
Nifty has got strong resistance at 17,300 odd levels, which happens to be 61.8 percent of the entire fall seen from 18,604 (all-time high registered in October 2021) to 15,183 (major swing low registered in June 2022).
Considering the bullish mood, the upcoming week can be approached with a low-risk strategy like Modified Call Butterfly in Nifty
On the weekly and monthly time frame, Welspun Corp is trending higher forming a series of higher tops and bottoms indicating strong up trend. However with Friday's up move the stock has confirmed "Symmetrical Triangle" breakout at Rs 220 levels. This breakout is accompanied with huge volume spurt indicating increased participation.
Throughout this year, Finolex Cables has been sulking as we witnessed nearly 50 percent retracement of the previous up move to test the Rs 350 mark. Fortunately, the corrective phase ended there and after a brief consolidation, the stock prices started moving upwards.
Vertical Spreads are the easy way to trade confidently at the top. Here, for a bullish trade, buy a call and sell a higher strike call (2-3 steps away). For a bearish trade, buy a put close to the current market price and sell a lower strike put (2-3 steps away).
If the index sustains above 17,018 levels—the low of July 29—it can extend the upswing to 17,550, where a slew of resistance points are placed, Mazhar Mohammad of Chartviewindia has said