At the higher levels, the market could encounter strong resistance around 19500-19600 levels in the short term. Immediate support is placed at 19320 levels, said Nagaraj Shetti of HDFC Securities. On the derivative front, the strike of 19500 saw the highest call open interest (OI) while the strikes of 19450 saw the addition of the highest call OI indicating immediate resistance.
The Long-Short ratio has improved drastically from 12.30% on 27 October to 17.68% on November 3 as the Foreign Portfolio Investors (FPIs) marginally trimmed their short exposure in Index futures. Nifty has given a higher close for three consecutive days now.
From a technical standpoint, the weekly chart displays a Bullish Inside Candle formation, with the weekly RSI at 51. On the daily chart, the 50-day moving average acts as a formidable resistance at 19,450 for the Nifty 50.
The short-term uptrend status of Nifty remains intact and there is a possibility of Nifty moving towards 19200-19300 levels again in the coming sessions before consolidating again from the highs, said Nagaraj Shetti of HDFC Securities.
The short-term trend of Nifty continues to be weak. It is expected to slide down to the lower support of 18,850 levels (200 day EMA) once again before showing another round of upside bounce from the lows. Any intra-week upmove from here could encounter resistance around 19,100 levels, said Nagaraj Shetti of HDFC Securities.