EquityPandit’s Outlook for Nifty for week (August 24, 2015 – August 28, 2015):
CNX Nifty ended the week on negative note losing around 3%.
As we have mentioned last week that if the index closes below the levels of 8300 the index can drift to the levels of 8300. On 21/08/2015 the index broke below the levels of 8300 and moved to the levels of 8225 but manages to close around the levels of 8300.
As seen from the chart above the index has taken support around the channel support lying around the levels of 8230.
Next week will be the expiry week and the index will be moving according to the options position.
8200 & 8300 Put options have the highest open interest of close to 50.00 lacs shares outstanding. So we think the index can hold the levels of 8250 till expiry.
8400, 8500 & 8600 Call options have the highest open interest of close to 40.00 to 50.00 lacs shares outstanding. So we think the index will face stiff resistance around the levels of 8450.
Technically the index is trading below short term and long term moving averages.
Range of the week is seen from 8150 to 8200 on downside to 8400 to 8450 on upside.