As we were pointing at markets to hit all times high, the Index reached well to the expected levels.
The weekly momentum has turned positive for the first time after the recent volatility. We must see a further upside given that the market is now headed much higher, but slower than all the previous up moves. The immediate levels that we can see are 15500 on the upside ( Which is very close) and 16000 on the very higher side.
On a daily time frame, the Index looks building up momentum, but slowly. The Upper channel on two swings is merging at closer to 15800 which is the possibility in June.
BankNifty is showing a similar pattern but has already seen much moment compared to the Nifty. The weekly projections showing 36510 on BB Upper channel, for which 32800 acts as weekly closing support.
The Options OI charts also suggest that there is a much bigger upside pending in Nifty. The 16000 calls have the highest OI with Change in OI and 15400 shown the highest change in OI on the lower levels. Also, witness that there is the unwinding of lower Calls strikes indicates that the markets are headed towards the upside.
On Daily timeframes, it’s the same but the swings are frequent with HHs and HLs.
This only tells me that there is some sort of sideways expected in Banking as we see 35000 puts having the highest Change in OI and 35500 having the highest change in OI. Any break of these levels is an actionable bigger move.
Streetgains View: Remain Bullish, buy on any sort of dips until we see any trend reversal.
Happy Trading Folks..
Santhosh Kumar V