Hot Stocks: Fibonacci projection suggests 12,300 will be the next resistance for Nifty
Episode 1980, Dec 05, 2019, 02:00 AM
Benchmark index on 4th December witnessed a sharp recovery of almost 100 points after hitting an intraday low at 11935.30. The index defended 21-Days EMA once again on the daily chart and bounced back to close above 12000 levels on Wednesday.
The Nifty50 has formed a Bullish Piercing Pattern on the daily interval which suggests the end of the prior three days of correction.
A Bullish Piercing pattern is formed when prices make a sharp recovery from its low point and retrace almost seventy percent to prior days red candle.
The Nifty Bank has formed a Bullish Engulfing candlestick pattern on the daily timeline on December 4th and the current chart structure presumes that the banking index may outperform Nifty50 in the near-term.
On the derivative front, in call options, the highest change in open interest is witnessed which is around 12,100, and 12,000 levels.
While in Put options, the maximum change in open interest addition was witnessed in the 12050 & 12000 strikes. This option data suggest that call writers are liquidating their position while put writers are in charge, which is a positive sign for this week's expiry and indicate bullish momentum is likely to resume.