Nifty futures last Friday (April 26th,2024) fell from the highs, to close at 22556, thereby losing 0.06%. The major losers for the day were Bajaj Finance(-7.73%), Bajaj Finserve(-3.52%), and IndusInd Bank(-3.32%).
The volume for the day stood at 6.24 million, which was around the average levels of the last 5 days and the daily cumulative open interest (COI) stood at 11.43 million, which is a fall of 40% from the previous day. The fall in the daily COI along with a minor fall in prices indicated some sort of “long unwinding”. The WoW gain in COI stood at 34%.
Friday’s fall may be attributed to the prevailing resistance of 22700-580 where huge selling has happened in the recent past(April 12th) and unless those levels are breached further downside may not be ruled out.
The price analysis of the chart indicates prices may fall once the immediate support of 22570-550 is breached and fall towards the support of 22380-300. The momentum and extent of the fall may be estimated, depending on the volume of the fall.
Moreover, on Friday, Nifty futures experienced a huge “negative delta” in the volume (-589.02K), further supporting the fact that sellers are creeping into the index.
Traders may experience two scenarios in the next few forthcoming sessions
Scenario 1(most probable): Prices may experience some bearishness and may move toward the support levels of 22380-300
Scenario 2: Prices may breach the resistance of 22700-720 and move towards higher levels of 22900-950.
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