Nifty: Are we going to witness Magic of 24 once again?

Nifty has settled at 11132.75 witnessed a sharp recovery after hitting a low of 11036.25. This index has been consistently holding above 24 times of its Price to Earnings Ratio since May 2017 and it is now fluctuating between 30 and 24. According to Friday’s closing NIFTY closed at 11201.75 and PE stood at 25.49 which translate earnings for entire index somewhere around 439.45. If this time also nifty replicates past behavior and reverses from 24.30 times of it’s earning then areas of 10700-10500 can be potential support. Areas discussed above are also important based on technical analysis. Market formed a bottom 10637 just before the announcement of corporate tax rate cut and then market rallied. This time again we can see this index finding support somewhere around 11000 zones, but if this level is taken out then 10700-10500 will be imminent. How market responds near 10700-10500 will decide destiny for the market. Recovery from those levels is likely where as stability below 10500 might trigger deeper correction in market.

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Nifty Options Weekly Expiry; MAX PAIN stands at 13400

#NIFTY #INDEX currently trading at 13438, down by 90 from previous close. Today index has opened gap down and taken out the low placed yesterday at 13449 triggering primary weakness in market for the day. Immediate support is now placed at 13390, retest to this level can’t be ruled out but stability below 13390 will result in to further weakness and then attempt towards 13350-13310 zones can’t be ruled out. Key support will be at 13300 and further stability below that level will bring more weakness. Resistance is now placed at day high which stands at 13488, any sustained move (Less likely) above that level will bring some relief to bulls and then attempt towards 13540-13590 can be seen. On #option_chain heavy #call_writing is being done at 13500-13600 strikes where as short covering is visible in 13450 and 13500 puts whereas longs build up seen in 13400 puts with high volume. Based on current #OI position level of #option_pain stands at 13400 thus based on current data at 10:52AM...

LET THE MARKET TELL WHO WE ARE

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