Sep 02,2020-Nifty 50’ downside capped, has room for pullback.

Expiry of weekly options is going to dominate Thursday’s session. Throughout Wednesday’s trade, strike price 11,500 saw the addition of over 970,000 contracts in Put Open Interest (OI). With this, the 11,400 strike price now holds maximum Put OI followed by 11,500. Strike price 11,700 holds maximum Call OI, followed by 11,600 and 11,800. What inference do we draw from this data? I think it shows the downside, if any, may be limited, while on the higher side, Nifty has some room for a pullback.

We recommend staying away from creating major positions on either side as Nifty is currently in a broad and volatile consolidation phase. Also, we expect the focus to shift to defensive plays, and the market moves to remain sector and stock-specific in the immediate near term. A careful momentum chase on either side with the protection of profits at every level is advised.

Nifty (11535) The analysis remains the same…the first sign of strength would be if Nifty opens flat and crores 11600’ the Nifty has yet again unfolded within the range and ahs closed mildly in the green… technically  now 11400 has become very crucial support to work with and its good as long as it holds…first sign of weakness is a breach of 11400…stiff resistance exists at 11661

Nifty Bank (23875) Technically stiff resistance exists at 24200 and downside to 23000-22500 is a possibility’ the Nifty Bank unfolded flat for the day and has closed mildly in the green…the Nifty Bank stayed below 24200 and has closed mildly in the green…technically now the lines in the sands are 24200 and 23500…

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