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July 22,2020 New Rising Window on Nifty chart shows strong momentum.

Nifty was able to sustain the opening gains and build on it. Despite capped moves throughout the day, the headline index ended the day with a decent gain of 140.05 points, or 1.27 percent.

The current setup on the daily charts shows Nifty is placed in a strong spot, after having broken out of the 200-DMA, which currently stands at 10,865. By breaking out, Nifty has sharply raised its support level to the 200-DMA. Given the options expiry over the next two sessions, the 11,200 level will be important to watch out for and it continues to hold the maximum concentration of Call Open Interest.


The 11,200 and 11,265 levels will act as overhead resistance points on Wednesday. Supports come in at 11,100 and 11,035.


All in all, if the maximum Call OI concentration, which is at the 11,200 level at present, shifts, then we may see higher opening levels for Nifty. Otherwise, upsides may remain capped. On the other hand, a high amount of Call writing at 11,000 and 11,100 levels will make sure we do not have any significant down moves unless a major tactical shift occurs. In view of the current technical setup, Nifty may continue to see rangebound movement. We reiterate approaching the market in a very stock-specific manner while guarding profits at higher levels.




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