Nifty started on a positive note amidst the US debt ceiling deal
Last Updated: 30th May 2023 - 01:18 pm
Nifty started the week on a positive note amidst positive news over the weekend on the US debt ceiling deal. However, post the gap up opening the index consolidated within a narrow range on Monday and ended around 18600 with gains of over half a percent.
Market participants seemed to be relieved as the uncertainty over the US debt ceiling deal was over in the weekend. However, our markets had already given a breakout above the 18450 resistance on Friday and confirmed a resumption of the uptrend. The Bank Nifty index importantly witnessed a positive momentum post the recent consolidation and it registered a milestone of new record high. FIIs have rolled over more of long positions in the index futures segment to May series and they added more longs leading their long positions to over 60 percent. This indicates a positive bias from the stronger hands and since both the Nifty as well as the Bank Nifty index have kept their respective 20 DEMA supports intact, the overall trend remains positive. In options segment, 18500 put option is witnessing a rise in open interest while 18600 and 18700 call options have decent open interest outstanding. The Midcap index too is trading at its all-time high indicating buying interest in the broader markets. Hence, traders are advised to continue to trade with the trend and look for buying opportunities from a short term perspective.
The immediate support for Nifty is now placed in the range of 18500-18420 while resistance is seen around 18700/18800.
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