Nifty bounces to close above monthly trendline support - IIFL

Last week, Nifty touched a low of 5,254 and bounced back to close above the monthly trendline support (5,450). However, to confirm a trend reversal, it needs to close above the same for the month of August. On the weekly chart, pullback from week's low has led to formation of hammer candlestick which signifies end to intermediate downtrend. So expect some consolidation this week.

Sensex August future which shed 360cont in open interest has seen unwinding in yesterday trade.

On option front, BSE100 August 5,500 strike call which added 2750cont in open interest in has seen buying in yesterday trade, while put writing was seen at BSE100 August 5,400 which added 3000cont in open interest.

Source : Equity Bulls

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