The Nifty 50 bounced back with a half-percent rally after a 1 percent correction in the previous session, supported by the banking sector on June 9. Overall, the trend remains weak, as the index traded below all key moving averages. However, a recovery was witnessed with the formation of a bullish reversal-type pattern near the support level. According to experts, range-bound trading may continue until the index gives a strong and sustainable close above the 23,500–23,600 zone, which could increase the possibility of an upward move toward 23,800–24,000. Until then, immediate support is placed at 23,100, below which the 23,000 level will be crucial to watch.
Levels For The Nifty50 (23,242):
Resistance based on pivot points: 23,275, 23,317, and 23,384
Support based on pivot points: 23,142, 23,100, and 23,034
👉: The Nifty 50 formed a small-bodied bearish candle with a long lower shadow, indicating buying interest at lower levels. This also resembles a Dragonfly Doji-type pattern on the daily timeframe, which is generally considered a bullish reversal signal. The index remains below all key moving averages, which are also trending downward. The RSI rose to 39.58 but remained below its reference line, while the MACD continued to trend downward and stayed below the signal line. However, weakness in the histogram faded. All these factors indicate a possible improvement in momentum, although the broader trend remains cautious.
Levels For The Bank Nifty (55,195)
Resistance based on pivot points: 55,329, 55,583, and 55,994
Support based on pivot points: 54,507, 54,253, and 53,842
Resistance based on Fibonacci retracement: 55,809, 57,195
Support based on Fibonacci retracement: 53,687, 52,798
👉The Nifty Bank outperformed the Nifty 50 and rallied 2.09 percent, forming a long bullish candle on the daily charts. The index surpassed the previous week's high as well as its short- and medium-term moving averages, supported by above-average volumes. The RSI jumped to 55.48 and witnessed a bullish crossover, while the MACD remained above the signal line with rising green bars in the histogram. All these factors indicate strengthening bullish momentum and improving market sentiment.
Nifty50 Call Option Data:
According to the weekly options data, the maximum Call open interest was seen at the 24,000 strike (with 49.7 lakh contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 23,500 strike (41.8 lakh contracts) and 23,200 strike (35.49 lakh contracts).
Maximum Call writing was observed at the 24,000 strike, which saw an addition of 18.53 lakh contracts, followed by the 23,500 and 23,200 strikes, which added 18.46 lakh and 16.61 lakh contracts, respectively. There was hardly any Call unwinding seen in the 22,600-24,000 strike band.
Nifty50 Put Option Data:
On the Put side, the 23,200 strike holds the maximum Put open interest (with 45.1 lakh contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 23,000 strike (34.99 lakh contracts) and the 23,300 strike (27.28 lakh contracts).
The maximum Put writing was placed at the 23,200 strike, which saw an addition of 25.66 lakh contracts, followed by the 23,000 and 22,600 strikes, which added 18.8 lakh and 17.44 lakh contracts, respectively. There was hardly any Put unwinding seen in the 22,600-24,000 strike band.
Bank Nifty Call Option Data
According to the monthly options data, the maximum Call open interest was seen at the 55,000 strike, with 10.54 lakh contracts. This can act as a key level for the index in the short term. It was followed by the 54,000 strike (10.22 lakh contracts) and the 56,000 strike (8.71 lakh contracts).
Maximum Call writing was observed at the 55,200 strike (with the addition of 37,530 contracts), followed by the 55,500 strike (19,920 contracts) and 55,000 strike (13,650 contracts). The maximum Call unwinding was seen at the 54,000 strike, which shed 1.12 lakh contracts, followed by the 54,500 and 54,200 strikes, which shed 85,860 and 56,460 contracts, respectively.
Bank Nifty Put Option Data
On the Put side, the 54,000 strike holds the maximum Put open interest (with 13.68 lakh contracts), which can act as a key support level for the index in the short term. This was followed by the 55,000 strike (8.82 lakh contracts) and the 54,500 strike (5.45 lakh contracts).
The maximum Put writing was placed at the 55,000 strike (which added 2.2 lakh contracts), followed by the 54,500 strike (1.43 lakh contracts) and 54,000 strike (1.21 lakh contracts). The maximum Put unwinding was seen at the 54,200 strike, which shed 17,160 contracts, followed by the 54,100 strike, which shed 9,210 contracts.
Report by SunilSankarSource:Moneycontrol, Network18
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