Market analysts are closely watching the Nifty50 as it attempts to surpass the 19,800-19,900 resistance zone. The formation of frequent upper shadows on the daily candles near this zone indicates the presence of strong overhead resistance. However, the Nifty50 continues to find support at the 19,600 level.
Experts believe that if the 19,800-19,900 zone is broken, the Nifty50 could potentially reach the 20,000-20,200 range, leading to new all-time highs. The current consolidation pattern is seen as a positive indication, with the possibility of a decisive upside breakout.
Technical research analysts highlight the importance of the opening upside gap that remains unfilled, suggesting bullish sentiment. The absence of significant reversal patterns or sharp weakness further supports the potential for an upside breakout.
It is important to note the market breadth, which slightly favors bulls as more shares advanced than declined on the NSE. The broader markets, however, remained mixed with the Nifty Midcap 100 index up marginally and the Smallcap 100 index down slightly.
To navigate these market trends effectively, we have compiled a list of 15 key data points to help identify profitable trades:
1. Key support and resistance levels on the Nifty50 indicate 19,760, 19,743, and 19,714 as possible support levels, while 19,818, 19,835, and 19,864 are potential resistance levels.
2. The Bank Nifty closed higher after a rangebound session, with a positive bias. It is expected to find support at 43,611, 43,562, and 43,484, and resistance at 43,767, 43,815, and 43,893.
3. Options data reveals that the 19,800 strike has the highest Call open interest, followed by the 19,900 strike. The maximum Call writing was seen at the 19,900 strike, while maximum Call unwinding occurred at the 19,700 strike.
4. On the Put side, the 19,700 strike has the highest open interest and can act as a key support level. Meaningful Put writing was observed at the 19,800 strike, while Put unwinding occurred at the 19,200 strike.
5. Stocks with high delivery percentages, such as Bajaj Auto, Petronet LNG, Hindustan Unilever, Power Grid Corporation of India, and Tata Consultancy Services, suggest investor interest.
6. A long build-up was observed in 73 stocks, including Indian Energy Exchange, IRCTC, SBI Life Insurance Company, Voltas, and Oberoi Realty.
7. Based on the OI percentage, 25 stocks saw long unwinding, including BHEL, NMDC, REC, ONGC, and Maruti Suzuki India.
8. A short build-up was seen in 43 stocks, such as IndiaMART InterMESH, Container Corporation of India, Bharat Electronics, Balkrishna Industries, and SBI Card.
9. Based on the OI percentage, 46 stocks were on the short-covering list, including L&T Technology Services, Ashok Leyland, Chambal Fertilisers, City Union Bank, and Escorts Kubota.
10. The Nifty Put Call ratio (PCR) jumped to 1.02, indicating an increase in bearish sentiment as traders buy more Puts than Calls.
These market trends and data points provide valuable insights for traders and investors looking to make informed decisions. However, it is essential to conduct further research and analysis to develop a comprehensive trading strategy. Stay updated with the latest market news and monitor price movements to identify potential breakout opportunities.
Q: What is the key resistance level for the Nifty50?
A: The immediate resistance level for the Nifty50 is at 19,818.
Q: What is the key support level for the Nifty50?
A: The immediate support level for the Nifty50 is at 19,760.
Q: What is the Nifty Put Call ratio (PCR)?
A: The Nifty PCR is currently at 1.02, indicating an increase in bearish sentiment.
Q: Which stocks saw a long build-up?
A: Stocks such as Indian Energy Exchange, IRCTC, SBI Life Insurance Company, Voltas, and Oberoi Realty saw a long build-up.
Q: Which stocks saw short-covering?
A: Stocks like L&T Technology Services, Ashok Leyland, Chambal Fertilisers, City Union Bank, and Escorts Kubota were on the short-covering list.