corrected just over a percent and settled the week a tad above the 17600 level.

The market movement was very much in line with the in-house expectation post the strong rally and to be considered healthy from

a technical point of view. Technically speaking, amidst the price-wise correction in the market, the chart structure construes

optimism, and it is highly anticipated to continue the cheerful run in the upcoming week. As far as levels are concerned, till the index

firmly withholds the pivotal support of 17500, there is no sign of caution in the market. While on the higher end, 17700-17800 holds

stiff resistance and a decisive move beyond which could trigger the next leg of rally in the comparable period.

Going forward, we remain sanguine with the current momentum and would advocate the traders to utilize the dips to add long

positions in the index. Simultaneously, one should stay abreast with global and domestic developments regularly and continue with

a buy on decline strategy for the time being. Also, we expect strong moves in the broader market with the ongoing earning season;

Nifty current month’s future closed with a premium of 33.25 against a premium of 51.65 points to its spot in the previous week.

Next month’s future is trading at a premium of 90.60 points.

The Indian equity markets took a breather post three consecutive weeks of rally, wherein the benchmark index Nifty50 corrected

1.14 percent and settled a tad above the 17600 level. On the derivatives front, we noticed some mixed trade throughout the week

and eventually ended up with a mere short position in key indices on a weekly basis. On the options front, a meaningful addition of

OI is seen at the 17600-17500 put strikes, indicating a nearby support base for Nifty. On the flip side, the highest OI concentration is

seen at the 17700-call strike, which is likely to be seen as the major hurdle for the time being. The ‘Long Short Ratio’ remained

Osho Krishan Senior Analyst – Technical & Derivatives osho.krishan@angelone.in