NIFTY Chart Analysis, 11th May 2024 !!

We will be analysing the NIFTY chart using 3 key metrics.

1. Support and Resistance level on Chart
2. RSI levels
3. Option Chain Support and Resistance

Support and Resistance level on Chart

Nifty seems to be following a trend lines from almost the start of this year as you can see the above Chart how the upper side of the trend line becomes a resistance for nifty and how the lower side of the trend line becomes a support. It has taken support during the Israel and Iran escalations and now when there is an uncertainty during the election time in India It is again taking support here. Three phases of elections have passed and few more round of voting is left. It would be very interesting to see if these trend lines will continue supporting and we might see the uptrend starting from here, though we know that FIIs are selling more and more every day, but over the last few days we have seen that the velocity of the seling has reduced.

RSI Levels

RSI is currently at 41.4 on a daily time frame chart, we have seen that it is taking support near around 40 levels from the star of 2024 and RSI has never broken level of 40 from 2024. Which means that at around this oversold level we generally see Investor comes and put their money to buy stocks and hence index recover.

Option Chain Support and Resistance

If you look at the option chain, first lets look at the call side writing which generally suggest the resistance level because of the heavy money that is put in a view that index will not going to go above a certain limit. We see that the most heaviest call writing is at 22300, then the most heaviest call writing is at 22,000 then at 22,200 and then 22100. Which means that the call writers are thinking that in the upcoming future before expiry nifty will going to break 22,000 also but when we look at the call writing at 22,000 in comparison to the put writing at 22000 PUT writing is far bigger, which means that the put writer have more conviction that the 22,000 will not be broken next week, though we can see some changes in it before expiry which is on Thursday depends upon the move of the first three days. One need to keep a close watch on daily basis.