Although there will likely be some pullback following the recent run-up, overall momentum is still positive and can push the Nifty50 above 19,000 in the near term, with 18,300 serving as a key support level, according to experts.
The Nifty50 was under siege the whole day, and on December 2 the bulls lost control, ending an eight-day winning streak. Sentiment on the final day of the week was driven down by profit taking and negative global indications.
On the daily charts, the index has a bearish candle because it closed below where it opened, but it held the median of the last green candle (November 30) and found support at the 18,600 mark on Friday. As a result of the recent run-up, pullback may be evident in the ensuing sessions, but overall momentum is still positive and can push the Nifty50 towards 19,000 in the near term, with 18,300 serving as a key support level, according to experts.
The index formed a bullish candle on a weekly basis and closed with a percent gain, continuing the upward trend for a seventh straight week and forming higher highs.
The Nifty50 started off lower at 18,752 before correcting up to 18,639, a day's low. The index made modest progress toward recovering from the day's low and ended the session down 116 points at 18,696.
Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One, stated that the chart structure "construes a good development, with the indices being in a cycle of higher highs-higher lows."
He predicts that 18,500 will serve as the index's unwavering backing. The swing high of 18,900 odd zone, which is projected to give some intermediate resistance on the higher end, is expected to be followed in the short term by the psychological level of 19,000, according to the market expert.
According to options data, the Nifty50 is predicted to trade between 18,500 and 19,000 levels in the near future, with a wider trading range of 18,000 to 19,000 levels.
In contrast, the maximum Put writing was observed at 18,000 strike, the crucial support for the index, followed by 18,500 strike, with Put writing at 17,800 strike then 18,100 strike. The maximum Call open interest remained at 19,000 strike, indicating the major resistance area for the Nifty50, followed by 20,000 strike, with Call writing at 18,800 strike then 18,700 strike.
Although it climbed moderately by 0.67 percent to 13.45 levels, the volatility at lower levels remained favourable for bulls, so 19,000 in the upcoming sessions can't be completely ruled out, experts said.
Bank Nifty dipped below the 43,000 threshold at 42,977, fluctuated by nearly 200 points, and ended the day with a loss of 157 points at 43,104. On both a daily and weekly basis, the banking index has formed a respectable bullish candle, recording higher highs and higher lows for the fourth consecutive week.
"Put writers have maintained the 43,000 level throughout the day, but on the higher end, the index was unable to climb over 43,150. Relative strength index (RSI) has reached a bearish crossover on a daily basis "Senior Technical Analyst at LKP Securities, Rupak De, stated.
He believes that the trend would likely continue sideways to negative over the short term. According to the market expert, support on the lower end can be seen between 42,900 and 42,700, and resistance on the upper end can be seen between 43,200 and 43,500.
The Nifty Midcap 100 and Smallcap 100 indices increased by 0.9 percent and 0.6 percent, respectively, as the broader markets continued to trend upward.
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