RSI indicated a bearish crossover, suggesting a potential decline in the market. Now, Nifty has to hold above 19400 zones to extend the move towards fresh all-time high levels of 19525 and 19600 zones, while on the downside, support is intact at 19333 and 19250 zones, said Chandan Taparia of Motilal Oswal
The Nifty has reached a fresh lifetime high above the 19,000 level, forming a long bull candle on the daily chart. The positive chart pattern indicates a higher top formation, but the higher top reversal has not been confirmed. The support levels are at 18,888 and 18,777, while resistance levels are at 19,200 and 19,250. Volatility is holding below 11, supporting bullish sentiment. Option data suggests a trading range between 18,600 and 19,300. Traders are advised to stay upbeat and focus on beaten-down sectors.
The daily and hourly momentum indicator gave divergent signals. Heavy put writing additions were seen at 18,700 strike, making it a strong support for Nifty as we head into the final day of the June series expiry on Wednesday. Option activity at 18,800 strike will provide cues about Nifty Intraday direction on Wednesday, said Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities.
The index has broken out of its higher high formation of the last five sessions. Now, it has to hold above 18,777 zones to witness an up move towards 18,888 and 19,000 zones, while on the downside support exists at 18,710 and 18,666 zones, said Chandan Taparia of Motilal Oswal.
Nifty broke out above the 18,800 level and is close to surpassing the peak of 18,887 levels, accompanied by a long positive candle with minor upper shadow on the daily charts. The MACD showed a bullish crossover with a resistance level of 19,000 predicted to be on the horizon. Although the RSI and Nifty can keep the index strong, the moving averages are below the current index value, which reinforces a bullish outlook. Finally, the writers of call options at the 18,800 strike were seen closing their positions, signaling positive sentiment.