The Nifty opened above the psychologically vital 18,000 mark and managed to hold the level through the session to close at an almost eight-month high on September 13 on positive global cues and buying by foreign institutional investors.
The index, which closed 134 points, or 0.75 percent, higher at 18,070, its best closing since January 18, formed a small-bodied bullish candle on the daily charts.
“Technically, the Nifty has successfully cleared the short-term resistance of 18,000 and succeeded to close above the same which is broadly positive. On daily and intraday charts, the index is holding an uptrend continuation formation which supports further uptrend from the current levels,” Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities said.
He said 18,000 and 17,925 would act as key support levels, while 18,150-18,200 would be key resistance levels. The uptrend would be vulnerable below 17,925, and the index can slip to 17,850-17,800, the market expert said.
The immediate resistance for the 50-pack index is 18,100. If the Nifty manages to hold it, it can climb to crucial resistance of 18,350, with support at 18,000-17,900, experts said.
The broader market underperformed the benchmark. The Nifty midcap and smallcap 100 indices gained 0.16 percent each amid almost equal market breadth on the NSE. A bit of profit booking and volatility can’t be ruled out, experts said.
Also read: Gainers & Losers: 10 stocks that moved the most on September 13
On the Options front, after crossing 18,000 mark, where the highest open interest was seen, now 18,500 strike has the maximum Call open interest followed by 19,000 strike, with Call writing at 18,100 strike, which can be next resistance, followed by 18,800 & 18,500 strikes.
The maximum Put open interest is at 16,500 strike followed by 17,000 & 17,500 strikes, with Put writing at 18,000 strike then 18,100 strike.
The data indicates that the Nifty may be trade in the 17,500-18,500 range in the coming sessions.
Also read: Market shrugs off weak macro data; Sensex up 456 points, Nifty above 18,000
The India VIX, which measures the expected volatility in the market, fell 2.6 percent to 17.47 levels. If volatility stays below 18, it will be good for the market, experts said.
Banking index
Banking was one of the key supporting sectors for the market.
The Bank Nifty opened 200 points higher at 40,802 and traded in a 300-point range. The index closed 299 points higher at 40,873, the highest closing level since October 27, 2021.
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“The immediate hurdle is placed at 41,000 where the highest open interest is built up on the Call side and once breached will see a sharp short-covering towards 41,500-41,800,” Kunal Shah, Senior Technical Analyst, LKP Securities, said.
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