The stock market erased all of the previous day's gains to finish down six-tenths of a percentage point on December 9, weighed down by selling pressure on stocks in technology, metals and PSU banks. The BSE Sensex fell 389 points to 62,181 while the Nifty50 fell 113 points to 18,497 to form a bearish engulfing candle on the daily chart, signaling further weakness in the market. A long negative candle with a small shadow below has formed on the daily chart. Technically, this pattern suggests a break below range movement over the past few sessions. This is not a good sign and points to further weakness in the near term," said Nagaraj Shetti, technical research analyst at HDFC Securities.Believes Nifty's short-term uptrend appears to have reversed.
"After breaking below the crucial 18550-18500 support, Nifty is expected to slide to the next key lower support of 18150-18100 in the near term. Resistance is immediately at the 18600-18650 levels." said the expert. Broader markets were also under pressure, with the Nifty Midcap 100 and Smallcap 100 indices falling 0.4 percent and 1.1 percent, respectively.Key Nifty Support and Resistance Levels According to the dynamic charts, the key support level for Nifty is 18,426, followed by 18,366 and 18,269. As the index rises, key resistance levels to consider at 18,621 followed by 18,681 and 18,778.
Call option data
We have seen call maximum open interest at 19,000 strikes with 35.75 lakh contracts, which could act as a key resistance level in the December series. This is followed by 20,000 strikes involving 23.62 lakh contracts and 18,700 strikes involving more than 22.5 lakh contracts.The call writing was seen with 18,500 strikes adding 6.4,000 contracts, followed by 18,600 strikes adding 5.21,000 contracts and 18,700 strikes adding 4.67,000 contracts. Dropped calls were observed in 19,500 strikes, resulting in 2.69 lakh contracts followed by 19,200 strikes at 1.77 lakh contracts and 19,000 strikes at 1.44 lakh contracts.
Put option data
We have visible a most Put open hobby at 18,000 strike, with 33.forty six lakh contracts that can act as a vital assist stage withinside the December series.
This is accompanied through 18,500 strike, which holds 28.fifty four lakh contracts, and 17,500 strike, which has collected 27.four lakh contracts.
Put writing turned into visible at 17,500 strike, which brought 2.87 lakh contracts, accompanied through 18,seven-hundred strike, which brought 2.2 lakh contracts and 17,900 strike which brought 1.seventy three lakh contracts.
Put unwinding turned into visible at 18,500 strike, which shed 1.fifty nine lakh contracts, accompanied through 17,2 hundred strike which shed 43,550 contracts and 19,000 strike which shed 34,500 contracts.
Bank nifty
Nifty Bank rose 37 points to close at a record close of 43,633, outperforming the broader markets and forming a bearish candle on the daily charts on December 9th. The key pivot level that will serve as crucial support for the index comes in at 43,428, followed by the 43,312 and 43,124 levels. On the upside, the key resistance levels are located at 43,804, followed by the 43,920 and 44,108 levels.
FII & DII data
Foreign institutional investors (FIIs) sold net shares worth Rs 158.01 crore while domestic institutional investors (DIIs) bought net shares worth Rs 501.63 crores on December 9, according to preliminary reports NSE data.
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