On the weekly chart, the index formed a Rikshawman Doji pattern which suggests indecisiveness. However, the short term breakout remains intact as the price manages to stay above the previous swing high on the weekly chart. Weekly RSI is in bullish crossover and rising. On the higher end resistance is placed at 13150; a decisive breakout above 13150 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.
Markets traded in a narrow range throughout the week as both Nifty & Bank Nifty witnessed profit booking around its crucial resistance of 13,000 & 30,000 level. Bank Nifty outperformed the Nifty index by 0.4% with both the indices closing the week ~0.9%/1.3% higher. On the weekly charts, Nifty index formed a possible bearish evening star candlestick, indicating a losing momentum. Short gamma positions were the flavour of the week as the indices traded in a narrow range. FIIs index futures long/short ratio started the December series above 3x level in the favour of the bulls. On the options front (December 03, 2020 expiry), Nifty 13000CE & 12,800PE are witnessing fresh writing positions, indicating a fresh ceiling and floor level for the index around the mentioned strikes.