Why Did Nifty Hit 11101?
India’s benchmark Nifty opened gap down at 11202 and then plunged to 11101 in the first few minutes of trade today. Our Binomial Options scanning systems are indicating that the fall was triggered by institutional traders. The fall helped neutralize the Call options gamma which had witnessed exponential expansion in the last few trading sessions. Today’s closing has put the bulls back in the driver’s seat. There is a possibility of buyers facing resistance around tomorrow’s range high. Going forward, Nifty must trade above tomorrow’s range high to keep the uptrend intact. The nearest upside target for the index is around 11421 approx.
Is A Trend Reversal Coming?
Nifty scaled up and hit the upside target of 11381 today after an early jolt that pushed the index to a low of 11101 approx. Today’s closing at 11372 has confirmed that the market momentum continues to be in favor of the buyers. Overall, the market witnessed a fall of 224 points early on the day due to positions created by institutional traders. Call options buyers breathed a sigh of relief as options gamma was neutralized by the quick slip. Going forward, Nifty will continue the upward momentum only if it breaks the resistance around tomorrow’s range high. The nearest upside target in case of a breakout is 11421 approx. On the other hand, if the index falls from the resistance and breaks tomorrow’s range low, it might scale down to 11218 approx.
In the hourly session, Spot Nifty has closed around 11341 approx. The index must take the support of tomorrow’s range low in order to keep the buying trend intact. If Nifty trades below the range low, the nearest downside target is around 11259 approx. On the other hand, if the range low is not disturbed, Nifty might scale up to 11374 approx.
Bank Nifty Options Data