Daily charts of Nifty and BankNifty are showing positive divergence - Microsec

Nifty continued to remain extremely volatile and recovered smartly from early morning low of 5260 to make an intra-day high of 5418. A lot of short covering.

The daily charts of Nifty and BankNifty are showing positive divergence and a pull back rally is definitely on the cards. However, a closing above 5500 would be required for Nifty to test levels of 5650-5750 in the medium term.

Nifty Put Call ratio (OI) rose to 0.96 with the total open interest in Call options at 1,739,761 lots and that in Put options at 1,661,992 lots.

NMDC, PFC, PNB, ONGC, Reliance Capital, Tata Motors, TCS, BHEL, Hindustan Petroleum and LIC Housing Finance appear strong while Financial Technologies and Voltas Ltd might remain weak.

Volatility Index fell marginally by 1.46% from 28.09 to 27.68.

Source : Equity Bulls

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