Markets to be volatile on F&O expiry - IDBI Capital

Yesterday, the session has ended by forming a "Bearish Candle" with long upper shadow on the daily charts. The action indicates of bears getting aggressive near 6111 mark. At the opening bell, Nifty started the session on a flat note; thereafter, it rallies and registered a day's high at 6111.However, Nifty failed to carry the momentum and turned southward for the rest of the day before closing the session at 6049 with 24 points loss over the day. The daily set up has indicated a cautious stance for the coming sessions. Overall, the sentiment is getting exhausted near the F&O Expiry. On the oscillator's front, RSI & MACD are placed with weak signals on the daily charts. The market breathes were slightly in the favor of the declines with a rise in the volumes over the day.

Technically, the oscillators are indicating a negative divergence and prices are hesitating to scale higher. However, due to the F&O Expiry on the coming Thursday, markets are expected to turn highly wild and volatile. Therefore, traders are suggested to look out for appropriate signals before taking trading bet on the indices. While swing traders are suggested to keep focus in the oversold stocks.On the back of the strong international cues our markets are expected to open on a positive note; while indices could trade sideways to volatile for the day. However, any contrarian call will be covered during the trading sessions. Therefore day traders are suggested to first take a clue from the initial half an hour range in Nifty and then trade accordingly in the direction of the breakout. Intraday support levels are placed at 6015 and 5988 whereas the resistance levels are placed at 6082 and 6125.

Source : Equity Bulls

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