Technical and derivative: Markets traded in a narrow range throughout the week to end marginally higher

Let us take a glimpse into what happened in markets over this week.

Nov 20, 2020 06:11 IST India Infoline News Service

Technical
On the weekly chart, the index moved above previous week’s high which suggests continuation of the rally. During the week price remained sideways. Weekly RSI is in bullish crossover and rising. On the higher end resistance is placed at 13000; a decisive breakout above 13000 may induce further rally in the market. On the other hand, crucial support is placed at 12400; below which the Nifty may witness selling pressure.

Derivative
Markets traded in a narrow range throughout the week as both Nifty & Bank Nifty witnessed profit booking around its crucial resistance of 12,900 & 29,500, respectively. Bank Nifty outperformed the Nifty index by 1.5% with both the indices closing the week ~0.6% and 2.25% higher, respectively. On the weekly charts, Nifty index formed a bearish hanging man candlestick while the Bank Nifty index formed a spinning top pattern. Short gamma positions were the flavour of the week as the indices traded in a narrow range. FIIs index futures long/short ratio trended above the 2x level during the week as aggressive long positions were added. On the options front (November 26, 2020 expiry), Nifty 13000CE & 12,500PE are witnessing fresh writing positions, indicating a fresh ceiling and floor level for the index around the mentioned strikes. 

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