NIFTY WEEKLY OUTLOOK & OPTION CALL PUT TIPS FOR 10 OCTOBER TO 14 OCT 2022

GET LIVE OPTION CALL PUT TIPS FOR 10 OCT 2022 ON WHATSPP.PING ON 9039542248

WEEKLY RESISTANCE FOR NIFTY: 17500, 17700, 17900

PIVOT POINT: 17300

WEEKLY SUPPORT FOR NIFTY:  17200, 17000, 16800

WEEKLY CHART FOR NIFTY

Despite SGX NIFTY heralding a sluggish start, our markets opened with marginal gains on Monday 3 October, completely ignoring the global cues. However, with global developments being somewhat unfavorable over the past weekend, we were unable to capitalize on this promising start as things needed to reach an equilibrium and therefore we saw sustained selling throughout the session. Fortunately, the bulls staged a notable comeback the next day, retaking the 17200 level. In the second half, although we tested 17400 after a 1 day break, the market saw some sluggishness to end the week above 17300 as bulls managed to shed over 1% weekly. The Nifty50 remained volatile throughout the Friday’s session and finally ended above 17,300 with moderate losses on October 7 (Friday), after an uptrend in the previous two trading sessions. The Nifty50 opened lower at 17,287, and remained in a range of about 100 points before ending the session at 17,315 with 17 points losses.

NIFTY: STRONG SUPPORT& STRONG RESISTANCE LEVEL

Although Monday's session was a bit intimidating, the configuration remained intact and it certainly held up over the course of the week. Now that Nifty has managed to surpass 17200 and hold its position above it, 17200 17000 is now becoming a sacred zone for our market. In addition, we can now observe another technical indicator; i.e. a positive crossover in the daily RSI smoothened is likely to help the bulls. If the global market supports, we as the stronger market are likely to continue the upward direction. In terms of levels, 17400 – 17500 – 17650 can be seen as immediate hurdles for our leading index. We advise traders to remain confident and given the ranking of the NIFTY MIDCAP 50 Index it is better to continue to focus on stock-specific moves.

TECHNICALLY SPEAKING

NIFTY SPOT.

Nifty Spot closed this week at 17314 versus a close of 17094 last week. The put-call ratio is down from 1.22 to 0.97. The annualized cost of carry is positive at 1.50%. Nifty futures open interest rose 4.11%.

NIFTY DERIVATIVE VIEW.

Derivatives View Nifty closed the current month futures at a premium of 14.20 versus an 8.85 point premium to its spot last week. Next month futures are trading at a premium of 59.15 points. The Indian stock market staged a strong recovery and finally we saw a positive close after falling for the past two consecutive weeks. In the F&O space, a new long construction in Nifty and a short covering in the Banking index was observed. In the recent pullback, put writers added decent positions in 17000-17200 strikes. On Friday, we observed a large volume of call options being written from 17,500, causing the PCR-OI to fall below 1. Stronger hands covered some shorts and added bullish bets in the index futures segment; hence the long short ratio had improved slightly from 16% to 20% WoW. Considering the data points above, we believe that 17000-17200 will now act as a strong support zone and any dips around this zone will be an opportunity to add new longs in the system. On the upside, around 17500 is the immediate hurdle.

NIFTY50 OUTLOOK

The index has seen the formation of a small bodied bullish candlestick on the daily charts, while on the weekly chart there has been a decent bullish candlestick pattern formation following the hammer pattern on the previous week's downtrend, potentially confirming the uptrend's progress ahead. It was up 1.3 percent on the week and suffered three-week losses. The 50-period NSE benchmark was holding 50-, 100- and 200-day exponential moving averages (EMA - 17,270, 17,100 and 17,200, respectively), suggesting the trend may remain in favor of the bulls. So as long as it holds 17,400 or 50 DEMA, the move towards 17,500 -17,800 seems possible in the coming sessions, with crucial support at the 17,000 level. Nifty's underlying uptrend remains intact. The consolidation move could continue early next week and the market could eventually see a strong move higher off the lows into next week. A decisive upside break above the 17,450 hurdle is likely to pull Nifty towards another key resistance at 18,000-18,100. Immediate support is placed at 17,200 levels. The India VIX volatility index fell 2.6 percent to 18.81 levels, providing good support to the market. So, if volatility continues to cool, further stability cannot be ruled out in the coming sessions.