Nifty formed a Doji candle by ending roughly 48 points higher than the weekly expiry. Analysts warned that traders should use caution when opening fresh long positions because ADX and MACD are skewed to the downside.
In terms of derivatives, the biggest open interest for calls is at 19,500, followed by 19,600, and for puts, it is still at 19,300 strike price.
The Bank Nifty, on the other hand, has support at the 44,000 level and resistance is set at 44,900 to 45,000, according to Choice Broking.
A drop in the INDIA VIX index below 12 indicates a possible reduction in market volatility. In light of this environment, investors are urged to exercise caution, evaluating the advantages of taking profits against the exhilarating prospect of entering the market for the long term.
Since August 16, there has been an increase in new long holdings in Index Futures, according to Nifty Futures Open Interest (OI) data. The Long-Short Ratio shows that the Foreign Portfolio Investors’ (FPIs) activity has been relatively low during the last three trading sessions.