Mazhar Mohammad said nevertheless as apparent weakness on price chart is not visible, traders are advised to focus on stock specific opportunities on long side as long as Nifty sustains above 11,550 kinds of levels.
Nifty50 gradually inched higher amid consolidation throughout session and closed higher on April 15, but failed to hold 11,700 levels reclaimed during the day. The gains were driven by banks, auto, metals and select technology stocks.
The index consolidated in 11,650-11,700 zone for most part of the session. It formed a small bullish candle on daily scale, making higher highs - higher lows formation from past two trading sessions.
The price action seen on April 15 is not strong enough to push the market higher and for major upside, the index has to register a strong close above its record high of 11,761, experts said.
The Nifty50 started trade on a positive note at 11,667 and remained rangebound with gradual upside as the day progressed. It touched an intraday high of 11,704.60 in late trade and closed 46.90 points higher at 11,690.40.
"Albeit Nifty50 registered a small bullish candle with a narrow range of 56 points its price action is not strong enough to instil confidence among bulls for a bigger upmove," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
He said at this point in time it appears that unless bulls register a strong close above 11,761 levels a bigger rally may not unfold as already some of the momentum oscillators on weekly as well as daily charts are in a sell mode keeping bulls vulnerable for a sell off.
According to him, in case if Nifty manages a strong breakout above 11,761 levels then the rally can be initially expected to extend up to 12,000 kind of levels. "On the downside, weakness shall reemerge on a close below 11,600 levels."
Mazhar Mohammad said nevertheless as apparent weakness on price chart is not visible, traders are advised to focus on stock specific opportunities on long side as long as Nifty sustains above 11,550 kinds of levels.
Bank Nifty managed to hold above 30,000 level and remained consolidative for most part of the day, but failed to cross above 30,250 zone. The index closed 165.70 points higher at 30,104.25 and formed a bullish candle on daily scale.
"Supports are gradually shifting higher. Now it has to continue to hold above 30,000 to witness an upmove towards 30,250 then 30,500 zones while on the downside major support is seen at 29,700 then 29,500 levels," Chandan Taparia, Associate Vice President | Analyst-Derivatives at Motilal Oswal Financial Services told Moneycontrol.
India VIX moved up by 1.85 percent to 21.28 levels.
Sudden spike in VIX indicates limited upside with volatile swing in the market, experts said, adding Option band signifies a trading range in between 11,550 to 11,750 zones.
On the option front, maximum Put open interest (OI) is at 11,500 followed by 11,000 strike while maximum Call OI is at 12,000 followed by 11,800 strike.
Put writing is at 11,700 followed by 11,600 strike while Call writing is at 11,700 strike price.
"Nifty index has been consolidating in between 11,550 to 11,760 zones from last twelve trading sessions and now requires to hold and sustain above same to retest its lifetime high of 11,761 and then 11,888 zones while on the downside crucial support is intact at 11,550 zone," Chandan Taparia said.
