Technical View | Caution is the watchword, fresh uptrend only above 18,450


The Nifty moved within a 100-point range throughout the session before closing flat on November 16 as global markets were cautious after a missile strike on Poland.

Two people were killed in Poland by a missile strike, raising fears of a widening conflict but preliminary reports indicated the weapon was fired by Ukraine to intercept a Russian missile.

After opening flat, the 50-share benchmark traded in the 18,442-18,344 range and settled 6 points higher at 18,410.

The index defended 18,400 and formed a Doji pattern on the daily charts, indicating indecisiveness among the bulls and the bears.

As long as the index holds 18,300-18,350, a new high can’t be ruled out, even as the Sensex ended at a fresh high for yet another session, experts said.

“The current market texture is non-directional and fresh uptrend is possible only after the 18,450 breakout level, above which the index could hit the level of 18,550-18,600,” Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities said.

On the flip side, a slip below 18,350 can accelerate the selling pressure and can retest 18,250-18,200.

The options data indicated that traders were still betting on 19,000, with crucial support at 18,200-18,000. In the immediate term, the Nifty can trade in the 18,200-18,600 range.

On the options front, the maximum Call open interest was at 19,000 strike followed by 18,500 strike, with Call writing at 18,400 strike then 18,500 strike.

The maximum Put open interest was seen at 18,000 strike followed by 17,500 strike, with Put writing at 18,400 strike then 18,200 strike.

The broader market ended lower. The Nifty midcap 100 and smallcap 100 indices fell 0.65 percent and 0.83 percent.

Volatility rose during the day but overall, the level remains low giving comfort to the bulls. India VIX, which indicates expected volatility over the next 30 days, was up by 3.17 percent to 15.10.

Banking index

The Bank Nifty opened flat but moved higher to touch an all-time high of 42,611. Though it couldn’t hold the level, the Bank Nifty managed its best- ever closing at 42,535, gaining 163 points.

The banking index formed a bullish candle on the daily frame and made higher high, higher lows for the second consecutive session.

It has to hold above 42,500 to move towards 42,750 and 43,000, with supports at 42,250 and 42,000, Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services, said.

Disclaimer: The views and investment tips expressed by investment experts on are their own and not those of the website or its management. advises users to check with certified experts before taking any investment decisions.