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Manage episode 282871565 series 2281774
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Nifty has been forming higher highs and testing new highs for the last 12 weeks.
On January 21, the index moved higher and broke above the 14,700 mark. The rally that we are witnessing seems broad-based as it is supported by the Nifty Midcap, Smallcap and the Nifty Bank which now seems to be moving in sync with the Nifty.
On the open interest front, the highest participation is seen at 15,200 calls which have seen the addition of open interest.
On the put side, the 14,000 put contracts have the highest open interest. So, we can expect the range of the broader index to be 15,200-14,000 in the medium-term.
On the indicator front, the index remains above the 20, 100, and 200-day simple moving averages.
The ADX is moving higher as the index tests fresh lifetime highs and it points towards the strength in the uptrend.
Based on the above parameters, we can conclude that the medium-term trend of the index remains bullish and we expect the index to move higher and test fresh lifetime highs.
However, in the short-term, we might see a mild correction. From a medium-term perspective, we expect the index to move higher and test the 15,056 level which is 100 percent of the rise from 7,511 to 11,794, projected from 10,790.