The Nifty50 recouped losses and bounced back from its crucial support level of 9,600 on Wednesday, 5th July 207. It formed a bullish candle and a two-candlestick pattern, ‘Inside Bar’ which suggest consolidation in the market.
An ‘Inside Bar’ kind of pattern is a 2-bar pattern on the daily charts in which the latest candle is formed completely inside the shadow of the preceding candle. It could be a green or a red candle.
The Nifty50 moved in a narrow range but the high and the low was well within the trading range of Tuesday’s trading session. The Nifty50 rose to an intraday high of 9,650.65 and a low of 9595.50 in the previous session.
In Wednesday’s session, the Nifty50 opened at 9,619.75 and slipped to a low of 9607.35 but then bulls managed to push the index higher towards 9,643.65 which was the highest point of the day. The index finally closed 24 points higher at 9,637.60 which was well within the trading range of the previous session.
The possibility of the index going higher is much more than it going lower. It has finally given the highest daily close in last ten trading sessions and a decisive move above 9650 could attract the fresh buying interest.
On the options front, maximum Put OI was seen at strike prices 9,500 followed by 9,400 strikes while maximum Call OI was seen at strike prices 9,700 followed by 9,600.
Fresh Put writing was seen at strike prices 9,500 and 9,600 while no major Call writing was seen which suggests a scope for further upside from current levels.