Last week, there was a declining trend in Nifty 50 for three consecutive sessions. The overall trend in the stock market is bearish and the indices are trading below all important moving averages. If the level (23,350) of January 10 i.e. Friday is broken, Nifty 50 may move towards the November low of 23,263, while after that it will move towards 23,000. However, according to experts, the upward range of Nifty could be 23,600-23,700.
Here we are telling you about some important data points, which will help you to trade better:
1) Important level for Nifty 50 (23,432)
Resistance based on pivot points: 23,554, 23,613, and 23,710
Support based on Pivot Points: 23,361, 23,302, and 23,205
Special Formation: Nifty 50 has formed a bearish candlestick pattern on the daily charts and is expected to fall for the sixth consecutive session. Negative sentiment persists and the indices are trading below all important moving averages including the 200-day EMA. Momentum indicators are also not giving very positive signals and the Relative Strength Index is at 37.8, which is also pointing towards a negative crossover.
2) Important level for Bank Nifty (48,734)
Resistance based on pivot points: 49,275, 49,476, and 49,801
Support based on Pivot Points: 48,624, 48,423, and 48,098
Resistance based on Fibonacci retracement: 50,000, 50,865
Support based on Fibonacci retracement: 47,864, 46,078
Special Formation: Bank Nifty’s RSI has reached 28.50 and it has technically reached the oversold zone, due to which there is a possibility of a pullback. However, the overall sentiment is bearish and a long bearish candlestick pattern is forming on the daily charts. Moreover, the index remained sluggish for the sixth consecutive day and remained below all important moving averages.
3) Nifty Call Options Data
According to Weekly Options data, maximum call open interest was seen at 24,5000 strike (with 91.24 lakh contracts). This level can act as an important resistance in the short term. After this the figures were 24,000 strikes (83.4 lakh contracts) and 23,800 strikes (64.96 lakh contracts).
4) Nifty Put Options Data
Talking about the put side, maximum put open interest was seen with 22,500 strike (61.85 lakh contracts), which can act as an important support level for Nifty. After this the figures were 23,000 strikes (45.79 lakh contracts) and 23,500 strikes (38.01 lakh contracts).
5) Bank Nifty Call Options Data
According to monthly options data, maximum call open interest stood at 51,000 strikes (20.21 lakh contracts). This may act as an important resistance level for the index in the short term. After this the figures were 50,000 strike (17.5 lakh contracts) and 50,000 strike (10.01 lakh contracts).
6) Bank Nifty Put Options Data
On the put side, maximum put open interest was seen at 46,000 strike (with 15.03 lakh contracts) and this could act as an important support level for the index. After this the figures were 49,000 strikes (13 lakh contracts) and 47,000 strikes (11.9 lakh contracts).
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