Nifty closed in green amid the mixed global cues

After the recent correction from the all-time high of 21593 to 20976, the benchmark index has rebounded more than 50% from the low and approaching 21500 levels again. Post extended weekend, the nifty started the day on a positive note and traded within the range, closing in green at 21441 levels with a gain of 0.43%.  

Momentum readings are in the overbought zone with a declining volume activity. However, the overall market trend remains bullish with a positive bias that could lead the further up move toward the new milestone along with the volatile momentum. On the derivatives front, FIIs have been increasing long positions in the index future along with buying in the cash market. During the month, FIIs were the net buyers of 23,000cr. at the same time, DII added 12443 cr. in the cash segment. FII's long/short ratio has also improved from 60% to 65% during the last weeks. Moreover, the highest PE open interest for this series is at the 21500 strike price followed by a 21300 strike price, while on the CE side, the higher open interest stood at 21500 followed by a 21600 strike price, which suggests a probable trading range of 21300 to 21500 for the coming days. Any breakout above 21500 may accelerate the upside move in the nifty index. 

Hence, traders are advised to trade with a positive bias and look for buy on dips strategy for the coming days. One should also focus on INDIAVIX momentum to understand the market volatility.