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The Indian equities markets performed admirably, posting yet another day of gains, as expected. In line with the global trade structure, the markets opened steadily. The Nifty dropped momentarily into the negative twice in the morning session after opening on a strong note. It was, however, able to crawl back into the positive region each time.
By the afternoon, the market had returned to its previous high point. The markets were able to maintain that pullback for the rest of the day and showed no signs of correcting. The benchmark index gained 93 points, or 0.61 percent, at the close.
There is a monthly derivative expiry on Thursday, in addition to the regular weekly options expiry. Rollover-centric events will continue to take the front stage in the session. Put writing was seen at 15,200, 15,250, and 15,300 levels in the previous session.
Put writing was seen at 15,200, 15,250, and 15,300 levels in the previous session. This shows that the markets have made a concerted effort to boost the support level higher. While the highest Put OI concentration was found at 15,200, the highest Call OI concentration was found at 15,500. This establishes a huge range for the Nifty for expiry days of 15,200-15,300.
Volatility increased along predicted lines. The VIX in India increased by 10.77 percent to 20.8725. Resistance will most likely be found at 15,375 and 15,410 on Thursday, while support will be found at 15,250 and 15,180.
The RSI (Relative Strength Index) is currently at 63.19. It remains neutral and does not display any price differential. The daily MACD continues positive, with the signal line remaining above it. On the candles, a white body appeared. Aside from it, there was no other notable configuration on the chart.
The Nifty broke out of a falling channel, experienced a setback, and then resumed its upward trend, according to the pattern analysis. Currently, the breakout is still in effect and legitimate. As a result, the chances of Nifty testing its earlier highs have grown.
The undercurrent, in general, continues to be upbeat. The Nifty has effectively completed the breakout, raising its support in the 15,000-15,200 zones in the process. The markets will maintain inherent buoyancy as long as the index continues above this zone. On expected lines, volatility increased by nearly 10% in the previous session. This is something traders will have to be wary of, as it could lead to some profit-taking at higher levels. While cautiously chasing the momentum, a cautiously hopeful attitude for the day is advocated.