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BUZZ-NSE index retreats from 9,700; chart suggests may retest 9,450
July 7, 2017 / 7:24 AM / 5 months ago

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

** 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

** 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:

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