The Nifty 50 failed to witness follow-through buying due to pressure at higher levels and closed with moderate losses on June 10. The index could not defend the 23,400 mark (the 50 percent Fibonacci retracement of the April rally) on a closing basis and remained below all key moving averages, which continued to trend downward. As long as the index stays below 23,500, the consolidation phase may continue. The immediate and crucial support is placed at 23,100, and a fall below this level, followed by sustained trading, could open the door for strong bearish action. However, reclaiming and holding above the 23,500 level could increase the possibility of an upmove toward the 23,800–24,000 zone, according to experts.
Levels For The Nifty50 (23,215)
Resistance based on pivot points: 23,367, 23,424, and 23,516
Support based on pivot points: 23,183, 23,126, and 23,034
The Nifty 50 formed a small-bodied bearish candle with a long upper shadow on the daily charts, indicating pressure at higher levels. The index remained below all key moving averages and the midline of the Bollinger Bands, while the momentum indicators signalled a mixed picture. The RSI, at 39.01, remained below its signal line, while the MACD also sustained below its reference line, although weakness in the histogram continued to fade. All these factors indicate a cautious market undertone with limited buying interest at higher levels.
2) Key Levels For The Nifty Banj (55,100)
Resistance based on pivot points: 55,430, 55,555, and 55,757
Support based on pivot points: 55,025, 54,900, and 54,698
Resistance based on Fibonacci retracement: 55,809, 57,195
Support based on Fibonacci retracement: 54,576. 53,687
The Nifty Bank also witnessed profit booking after surpassing the 55,500 zone and closed 0.2 percent lower. However, it defended its 50-day EMA on a closing basis, with short-term moving averages continuing to trend upward. The RSI eased slightly to 54.66 but remained above its signal line, while the MACD maintained a positive crossover with further expansion in the green histogram bars. All these indicators suggest that the broader trend remains positive despite some near-term profit-taking.
3) Nifty50 Call Option Data:
According to the weekly options data, the 23,500 strike holds the maximum Call open interest (with 65.49 lakh contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 23,400 strike (60.21 lakh contracts) and 23,300 strike (56.3 lakh contracts).
Maximum Call writing was observed at the 23,400 strike, which saw an addition of 32.66 lakh contracts, followed by the 23,900 and 23,300 strikes, which added 28.02 lakh and 24.33 lakh contracts, respectively. There was hardly any Call unwinding seen in the 22,500-23,900 strike band.
4) Nifty50 Put Option Data:
On the Put side, the maximum Put open interest was seen at the 22,500 strike (with 58.19 lakh contracts), which can act as a key support level for the Nifty in the short term. It was followed by the 23,200 strike (49.55 lakh contracts) and the 23,000 strike (46.33 lakh contracts).
The maximum Put writing was placed at the 22,500 strike, which saw an addition of 23.81 lakh contracts, followed by the 22,800 and 23,400 strikes, which added 13.25 lakh and 12.19 lakh contracts, respectively. The maximum Put unwinding was seen at the 22,900 strike, which shed 48,815 contracts, followed by the 23,900 and 23,800 strikes, which shed 8,905 and 6,240 contracts, respectively.
5) Nifty Bank Call Option Data:
According to the monthly options data, the 54,000 strike holds the maximum Call open interest, with 9.89 lakh contracts. This can act as a key level for the index in the short term. It was followed by the 55,000 strike (9.87 lakh contracts) and the 56,000 strike (9.37 lakh contracts).
Maximum Call writing was observed at the 55,300 strike (with the addition of 1.64 lakh contracts), followed by the 55,500 strike (1.24 lakh contracts) and 56,000 strike (65,670 contracts). The maximum Call unwinding was seen at the 55,000 strike, which shed 67,050 contracts, followed by the 54,500 and 54,000 strikes, which shed 35,520 and 32,910 contracts, respectively.
6) Nifty Bank Put Option Data:
On the Put side, the maximum Put open interest was seen at the 54,000 strike (with 13.92 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 (8.98 lakh contracts) and the 55,500 strike (5.58 lakh contracts).
The maximum Put writing was placed at the 55,300 strike (which added 89,220 cont&hracts), followed by the 55,500 strike (41,310 contracts) and 55,200 strike (27,570 contracts). The maximum Put unwinding was seen at the 54,500 strike, which shed 53,220 contracts, followed by the 54,700 and 54,800 strikes, which shed 26,400 and 22,620 contracts, respectively.
written by Sunil Shankar Matkar
Source: Network18
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