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Nifty settled the week on a flat note for the second week in a row. On the weekly chart, the headline index has formed a Doji, confirming lack of decisive action by the market participants. On the daily timeframe, price has been in a consolidation mode after a strong rally, which indicates a pause in the upward move. In addition, the momentum oscillator, RSI (14) has come out from the overbought zone and is currently in a bearish crossover. Going forward, the trend is expected to remain sluggish. On the lower end immediate support is visible at 11800; sustained trades below that level may trigger more serious correction in the market. On the higher end resistance is seen at 12060.
Derivative Indicators
Markets traded in a narrow range throughout the week with Nifty/ Bank Nifty index closing 0.1/0.85% higher. Nifty PSU Bank index posted a smart recovery of ~5% in the closing part of the week, closing ~1% higher as majority of its constituents witnessed short covering and long buildup formation. FIIs index future long/short ratio hovered around 0.8x for the second week in a row as positions tilted in the favour of the bears. India VIX index closed the week at 15, down 5%. On the options front (November 21, 2019 expiry), Nifty 12000CE is carrying heavy writing positions, making 12,000-mark as the ceiling level for the index in the coming week.
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