Technical
The index continued its upward journey as it formed green candle after two small bodied candles on the weekly chart. The bias remains positive as the price manages to stay above the previous swing high on the weekly chart. Weekly RSI is in bullish crossover and rising. On the higher, end resistance is placed at 13150; a decisive breakout above 13300 may induce further rally towards 13750. On the other hand, crucial support is placed at 12700; below which the Nifty may witness selling pressure.
Derivative
Markets witnessed a strong breakout rally during the Friday’s trade after trading in a narrow range for the first three trading sessions of the week. Nifty & Bank Nifty closed above its crucial resistance level of 13,200 & 30,000 respectively, negating the reversal candlestick patterns formed during the last two weeks. Bank Nifty outperformed the Nifty index by ~1% with both the indices closing at weekly highs. Short gamma positions were the flavour of the week as the indices traded in a narrow range. FIIs index futures long/short ratio continued to trend above 3x level as the concentration of the positions remained in the favour of the bulls. On the options front (December 10, 2020 expiry), Nifty 13000PE witnessing fresh writing positions, indicating a formation of a floor level for the index around the 13,000 mark.
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