Tag: Technicals

The Nifty50 saw a minor reversal on Tuesday, closing with a loss of 3 points. Experts said that a decline below 19,850 levels could confirm a short-term top reversal pattern. Bank Nifty also saw profit-taking, closing with a loss of 59 points.

The Nifty50 index hit a new closing high of 19,996.30 on September 11, 2023, after crossing the psychological 20,000 mark in intraday trade. The index was supported by all sectors, with financials and metals leading the gains. The market is expected to remain positive in the near term, but investors should remain cautious of the risks, such as rising inflation and interest rates, and the ongoing war in Ukraine.

Ashish Kyal, CMT, Founder & CEO of Waves Strategy Advisors, expects the Nifty50 to touch 20,100 and the Bank Nifty to 45,700 in September. He also sees double-digit returns from Godrej Properties and Affle India.

The Nifty50 index closed above 19,800 on Friday, its highest level since July 2022. The rally was broad-based, with all 15 sectors ending in the green. The market was supported by strong buying in heavyweights such as Reliance Industries, Infosys, and HDFC Bank. Technically, the Nifty is now eyeing the 20,000 milestone. Investors should not become complacent and wait for dips to initiate fresh longs.

Gamma explosion is a phenomenon that occurs when the gamma of an option increases rapidly, typically in the days leading up to expiration. This can cause the option's price to move very quickly in response to small changes in the underlying asset's price. Gamma explosion can be used to increase profits or reduce risk, but it can also be dangerous if not understood.