InCred Equities
Nifty 50 Overview:
•\u0009Resistance Levels: 24,622, 24,650, 24,694 (based on pivot points)
•\u0009Support Levels: 24,534, 24,507, 24,462 (based on pivot points)
•\u0009Market Sentiment: As long as Nifty 50 sustains above 24,500-24,550, it is likely to move towards 24,700-24,800. A fall below the 24,400-24,300 range could trigger further downside.
•\u0009Candlestick Pattern: Despite forming a bearish candlestick, the Nifty continued its higher highs-higher lows pattern, a positive indicator if it stays above key moving averages.
Bank Nifty Overview:
•\u0009Resistance Levels: 50,630, 50,735, 50,905 (based on pivot points)
•\u0009Support Levels: 50,290, 50,185, 50,016 (based on pivot points)
•\u0009Market Sentiment: The Bank Nifty is likely to face consolidation unless it surpasses key moving averages. Momentum might build if these levels are breached.
Options Data:
•\u0009Nifty Call Options: Maximum open interest at the 25,000 strike, indicating a strong resistance level. Significant Call writing at 24,600 suggests a cap at this level for the short term.
•\u0009Nifty Put Options: Maximum open interest at the 24,000 strike, marking a strong support level. High Put writing at 23,900 could bolster support around this area.
•\u0009Bank Nifty Call Options: Strong resistance at 50,500, 51,000, and 51,500 strikes.
•\u0009Bank Nifty Put Options: 49,000 and 50,000 strikes serve as key support levels, with significant Put writing at 50,400 indicating support near this level.
Market Indicators:
•\u0009Put-Call Ratio (PCR): A drop to 1.17 suggests a shift towards a bullish sentiment but still cautious.
•\u0009India VIX: Volatility continues to decline, favoring bullish trends.
Strategy:
•\u0009For Nifty 50: Watch for sustained levels above 24,500-24,550 for a potential upside. A break below 24,400 could indicate a bearish move.
•\u0009For Bank Nifty: Monitor for consolidation around key EMAs. Surpassing these levels may trigger momentum.
Stocks to Watch:
•\u0009Long Build-up: 62 stocks showed signs of long positions, indicating potential bullish opportunities… BSOFT, BalramChn, HindCoper, NALCO, Glenmrk, etc.
•\u0009Long Unwinding: 17 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding… IndHot, JublFood, HDFCLife, AdaniEnt, Coromandel, SBILife, IndiaCem, etc.
•\u0009Short Build-up: 51 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions.. IndusIndBk INDIGO, HDFCAMC, GujGas, Astral, M&M, ApolloTyyre, etc.
•\u0009Short-Covering: 55 stocks exhibited short-covering, suggesting a potential price rise…PEL, AartiInd, HeroMoto, GAIL, TATASTEEL, VOLTAS, BIOCON, etc.
•\u0009High Delivery Trades: Focus on stocks with a high share of delivery trades for potential long-term investment opportunities…Indigo, M&MFin, HUVR, BhartiArtl, SunPh, Dabur, DalBharat, IndusIndBk, Trent, Navinfluor.