EquityPandit’s Outlook for Nifty for week (July 27, 2015 – July 31, 2015):
Nifty ended the week with the loss of around 1%.
As we have suggested last week that the index is moving in a channel pattern from 26/06/2015 and according to that channel the next target for the index lies in the range of 8680 to 8720 levels and the index hit a high of around 8655 and retraced back.
The coming week will be the expiry week so we can expect the volatility in the markets.
As per the options data it is seen that the index has the logical support around the levels of 8450 to 8480 zone as 8500 Put options has the highest open interest outstanding.
On the call side the highest open interest lies in the 8600 and 8700 strike price which will cap the index on any up-move.
Technically also the index has the support around the zone of 8430 to 8480 where 20 Daily EMA and 50 Daily EMA are lying.
Resistance for the index lies in the zone of 8600 to 8650.
Range for the week is seen from 8350 to 8450 on downside to 8650 to 8750 on upside.