Technical and derivative: Nifty, Bank Nifty close the week on a flat note

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

Feb 20, 2020 10:02 IST India Infoline News Service

Technical View

Nifty has formed a Hanging Man candlestick pattern on the weekly chart, which has a bearish reversal implication. On the daily chart, once again Nifty failed to make new high as lack of long bets were seen in market. The Weekly RSI is in a bearish crossover and falling, which suggests negative price momentum. On the lower end, immediate support is pegged at 11900, below which correction may expand towards 11700 over the short term. Resistance is seen at 12250. Above 12250, Nifty may scale up towards 12350 and higher.

Derivative Indicators

Markets witnessed whipsaw moves throughout the week as both Nifty & Bank Nifty closed the week on a flat note. Nifty index underperformed the Bank Nifty index by ~0.65% as the index continued to  add short positions during the week. FIIs index future long/short ratio hovered around 0.3x level during the week as the short positions continued to outweigh the long positions.  India VIX index closed the week on a flat note at 13.7, up 0.5%. On the options front (February 27, 2020 expiry), Nifty 12200CE & 12000PE are the maximum open position strikes, indicating a ceiling and the floor level for the index during the February series.

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