Indian markets post strong recovery and end the week marginally higher

Let us understand the technical & derivative overview of Nifty over the week and expected trend for the next week.

Mar 29, 2020 05:03 IST India Infoline News Service

Technical
Indian equity has closed with a marginal gain after five consecutive losing streaks. The Nifty has ended with a large bullish candle on the weekly chart. On the higher end, Nifty has found resistance around the rising trendline on the weekly chart. The daily RSI has entered a bullish crossover. The current set up is an early indication of a short term pullback. However, on the higher end, the index may find stiff resistance at 9000-9150. Only sustained trade above 9150 may induce rally towards 9500. On the lower end, support is placed at 8500/8000.

Derivative
Markets posted a strong recovery during the last three trading sessions of the week as both Nifty & Bank Nifty index recovered almost everything that it had lost during the first two trading sessions of the week. Bank Nifty index underperformed the Nifty index by ~0.75% as both the indices closed the week ~1.7 and /1% lower, respectively. Both the indices have seen lower rollovers getting into the April series, making a case for the continued volatility backed by low open interest base. FIIs index future long/short ratio for the April series started around 0.4x in the favour of bears, though the total open positions remain very low. India Vix index closed the week at 71, up 5%, however, the index cooled off 20% from its record highs of 86 during the week.      

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