The session was heavily dominated by the weekly expiry of options. The maximum Put OI was at 11,800 level which prevented Nifty from slipping below it.
The domestic equity market on Thursday remained within a limited range and ended the day with a modest loss.
From a technical perspective, this session once again resulted in the formation of an Inside Bar. This was also the fifth such consecutive session which stayed within the range of a large 'mother bar' formed on October 15th.
The pattern analysis shows the formation of a broad consolidation zone with 12,000 at the upper edge. This level, unless taken out convincingly, will act as a stiff resistance point going ahead from here.
We will see FMCG, consumer non-discretionary, and other defensive stocks showing good relative strength over the next few days. We recommend staying put with defensives, keeping leveraged exposures at modest levels, and guard profits vigilantly at higher levels. A continued cautious approach is advised for the day.