July 7, 2017 / 7:24 AM / 15 days ago

BUZZ-NSE index retreats from 9,700; chart suggests may retest 9,450

2 Min Read

** The NSE index tested resistance at 9,700 level on Thursday and its wave pattern suggests 50-share benchmark has completed wave B of a corrective cycle and a descending wave C may have started tmsnrt.rs/2tY6iI5

** Resistance near 9,700 level was created by the 100 pct retracement level of wave A which started from June 22 high of 9,698.85 up to June 30 low of 9,448.75

** In case of a flat correction, wave C might take the index up to June 30 low

** Support also exist near 9,639.65 and 9,603.18, at the 76.4 pct and 61.8 pct retracement levels of wave A

** In another sign of bearishness, Tenken line of the cloud cut below the kijun line on Monday

** Options traders are also betting on a downturn, as out-of-money put strikes are trading at a higher premium compared to counterpart out-of-money call options equidistant from the index level

** Open interest is also highest for 9500 put options < NIF09500S7.NS> and it is 1.5 times that of highest open interest call option, suggesting option traders are betting more on a move towards 9500 level for the index (RM: gaurav.dogra.thomsonreuters.com@reuters.net)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below