Nifty is placed precariously near the resistance zone at 11,300-11,350. Weekly options contracts expire on Thursday and this will keep the market on the tenterhooks. The strike price at 11,300 saw maximum Put and Call writing on Wednesday and this kept the possibility of the market swinging either way on the expiry day of weekly options.
On Thursday, the 11,350 and 11,390 levels are likely to act as key resistance points for Nifty, while supports will come in at 11,210 and 11,170 levels.
The market is showing signs of mild distribution at higher levels. The technical setup shows Nifty continues to remain vulnerable at current level unless the 11,300-11,350 zone is taken out convincingly. Also, a strengthening dollar may exert pressure on the emerging markets, as the Dollar Index is oversold on the short-term charts and this may inflict some temporary negative impact on emerging markets.
We recommend avoiding aggressive positions and approaching the market with a high degree of caution.
Nifty Bank (22227) he uptrend is still valid and upside to 22379 is a possibility as long as 22121 holds’ the Nifty Bank too opened in the red and climbed to close in the green… technically upside to 22379-22573 is a possibility as long as 22000 holds…