Representative image.
The Nifty50 made an attempt to reclaim 18,300 in the early hour of trading but failed to sustain higher levels amid volatility and closed with marginal losses on November 9, as traders may be cautious ahead of US inflation numbers due tomorrow.
The index has formed a sizeable bearish candle on the daily charts taking strong support at the 18,100 mark. Unless and until the index holds 17,900-18,000, the upside momentum is expected to continue with the index having a first crucial hurdle at 18,350 (the high of 2022) and 18,600 (record high), experts said.
The Nifty50 opened strong at 18,288 and climbed up to 18,296, but after an initial rally, the index remained volatile for the rest of the session, hitting a day’s low of 18,117. Finally, it settled at 18,157, down 46 points.
“On the higher end, the headline index has found resistance around 18,300. The overall trend is expected to remain volatile as long as it remains below 18,300. A decisive move above 18,300 may induce a rally towards 18,600,” Rupak De, Senior Technical Analyst at LKP Securities said.
However, failure to move beyond 18,300 may trigger further profit-taking. On the lower end, support is pegged at 18,000; below which the index may extend its loss towards 17,700, the market expert says.
The Option data indicated that the Nifty50 may trade in the range of 17,900-18,400 levels in the coming sessions.
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We have seen maximum Call open interest at 19,000 strike followed by 18,500 strike with Call writing at 18,700 strike and then 18,300 strike. The maximum Put open interest was seen at 18,000 strike followed by 17,500 strike with Put writing at 18,200 strike and then 18,000 strike.
The volatility index India VIX was up by 2.11 percent to 15.92 levels, but overall low volatility is giving comfort to the bulls.
The broader markets also traded lower with the Nifty Midcap 100 index falling 0.7 percent and Smallcap 100 index declining 0.56 percent on weak breadth. About 1,074 shares have corrected against 923 advancing shares on the NSE.
Also read: Gainers & Losers: 10 stocks that moved the most on November 9
Bank Nifty opened positive at 41,915 and entered into a new price territory during the day. It witnessed some profit booking at a higher zone in the initial half of the session but reclaimed and made a new high of 41,948 during the mid-part of the day.
The banking index has formed a small-bodied bearish candle on the daily frame and closed with gains of 96 points at 41,783, the highest-ever closing level. “It has to hold above the 41,500 mark to march towards 42,000 and 42,250 levels, with supports at 41,500 and 41,250 levels,” Chandan Taparia, Vice President, Analyst-Derivatives at Motilal Oswal Financial Services said.
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