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The Nifty 50 index experienced volatility on November 11, closing flat with a negative bias. Despite the fluctuations, the index successfully defended the crucial 24,000 level. This defense suggests potential for an upward rally towards the immediate resistance at 24,300, followed by a key hurdle at 24,500. However, if the index falls below 24,000, support at 23,800 cannot be ruled out. The index started the day lower at 24,087 and hit an intraday low of 24,005 early on. As the day progressed, it reached a high of 24,337, a recovery of over 300 points from the low. Despite this, the index couldn't maintain these gains and finished at 24,141, down by 7 points. The daily charts show a small bullish candlestick pattern with an upper shadow, indicating that bulls were unable to sustain the upward bounce.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, notes that despite the decline over the past couple of sessions, there was no sharp downward momentum. This market action could offer hope for a bullish comeback. Shetti believes the underlying trend of the Nifty remains choppy with a weak bias. He predicts an upside bounce from near the lower range of 23,800 levels in the short term, with immediate resistance to be watched around 24,300. Options data supports this view, indicating immediate resistance at 24,300 followed by 24,500, while support is placed at 24,000. The weekly options data shows maximum call open interest at the 25,000 strike, followed by 24,500 and 24,800 strikes. Maximum writing is seen at the 24,700 strike, followed by 24,300 and 24,500 strikes. On the put side, maximum open interest is at the 23,000 strike, followed by 23,500 and 24,000 strikes. Maximum writing is observed at the 23,700 strike, then the 23,600 and 24,000 strikes.
The Bank Nifty also saw volatility but outperformed the benchmark Nifty 50. It rose by 316 points to 51,877, forming a bullish candlestick pattern with both upper and lower shadows on the daily timeframe. The banking index negated its lower highs formation from the previous two sessions. Chandan Taparia, Senior Vice President | Analyst - Derivatives at Motilal Oswal Financial Services, believes the Bank Nifty needs to hold above the 51,750 zone for a bounce towards 52,222, then 52,555 levels. A hold below this level could see some weakness towards 51,500 and then 51,250 zones. The India VIX, the fear index, dropped further and corrected in four out of the last five consecutive sessions, down by 1.38 percent to 14.27. If it continues to decline, it may offer some comfort to bulls. The article concludes with a disclaimer emphasizing that the investment tips expressed are opinions and users should consult certified experts before making any investment decisions.
Source: Technical View: Nifty needs to defend 24,000 to bounce towards 24,500 amid choppy trade