The Nifty set a new high in the six weeks but closed below the 15,000 level over the weekend. The market swung with enthusiasm as anticipated. Support is expected at the 14,500-400 level this week. The Volatility Index stands at 22.25, indicating that the Nifty may rise or fall by 462 points during the week. Therefore, the 15,450 level is expected as an upward resistance, while there is support at 14,500.
As reported last week, Nifty was strong mainly due to the uptick in PSU banks. PSU banks saw more than 10 percent growth in the past week, although there is a possibility of pressure in private banks. Bank Nifty advises selling at upper levels. This index has resistance at 36,500 and 36,800, while support at 35,400 and 35,000.
FIIs increased long positions in index options FIIs increased long positions in stock futures as well as index futures and index options. However, but the size of the position is not impressive. So this week there is a possibility of buying at lower levels. IT stock is expected to remain strong. Stock-specific movement will remain. Trading traders are advised to trade with hedging due to increasing market volatility.