A piercing pattern on daily chart coupled with a Double Bottom Formation has provided a support to bulls with a closing above crucial level of 9740. Both patterns on daily chart will be crucial to watch in coming sessions. Though Nifty ends expiry with a lot of loss and enters in October with a cautious approach.
A piercing pattern in a reversal apttern which has its body placed in lower trading range of previous day, usually a bearish day, while the close above previous day close is an indication that supports may be held. We have also seen a double bottom formation at 9700 which Nifty has taken support of and was observed in August series. So these Two patterns will be critical as both have very high reliability.
On Immediate Basis, we are seeing support at 9700 and 9640. Incase Nifty is able to sustain these levels we may see a rebound which may be short term towards 9850 – 9900. To resume to uptrend we need a close above previous resistances. Resistances in near term are at 9850 – 9900 and beyond that bulls may take it to next level of 10K.
OI Data will be observed since we are heading into October expiry on a weaker note though sustainability of lower levels and major contribution of heavyweights will improve the sentiments going forward. We continue to remain bullish on OMC’s, Pharma and FMCG for Oct series while Banking may see some further till BankNifty is below 24200.