Nifty futures last Friday (April 19th,2024) recovered from the lows to close at 22128, thereby gaining 0.33%. The major gainers for the day were Bajaj Finance(3.28%), M&M(2.86%) and Maruti(2.47%).
The volume for the day stood at 12.25 million, which was higher than the last 5 days’ average and the daily cumulative open interest (COI) stood at 15.48 million. Though there is a fall in the daily COI indicating some sort of short covering, the WoW gain in COI stood at 16%.
The price analysis of the chart indicates prices may recover in the immediate future as buying takes place around historic support levels. The price support is further enhanced by the support of “yearly” VWAP, which may push the prices towards the resistance (monthly VWAP) levels of 22430.
Moreover, on Friday, Nifty futures experienced huge bullish absorption in the volumes, from -195K to 284K, indicating buying at 21900-21800 levels.
Traders may experience two scenarios in the next few forthcoming sessions
Scenario 1: Prices may experience some bullishness and may move towards the monthly WVAP levels of 22430.
Scenario 2: Prices may fall below the support zone of 21800 and may fall towards the support of 21400
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