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The Nifty50 recouped early losses and consolidated in a range of 50-60 points in the rest of the trade before closing the session on a flat note on December 12. The index has taken support at 18,300-18,350 levels and formed a bullish candle on the daily charts as the closing was higher than the opening levels.
The index needs to hold those support levels in coming sessions, which can help it gradually move towards 18,600-18,700. Overall, the consolidative nature of the market is expected to continue, experts said.
The Nifty50 opened around 100 points lower at 18,402 and corrected up to 18,346, an intraday low, but bounced back immediately to climb up to 18,521 in the morning session itself. In the rest of the session, the index remained volatile and finally closed flat at 18,497.
“The Nifty has remained below the crucial level of 18,500 on a closing basis. During the day, the Nifty fell lower but found support around 18,350 before closing just below 18,500,” Rupak De, Senior Technical Analyst at LKP Securities said.
Going forward, he feels the trend may remain negative, with support placed at 18,350-18,200. On the higher end, 18,600-18,670 may act as a crucial resistance, the expert said.
On the Option front, maximum Call open interest was seen at 19,000 strike, followed by 20,000 strike and 18,500 strike, with Call writing at 19,100 strike and then 18,900 strike. The maximum Put open interest was seen at 18,000 strike followed by 18,500, with Put writing at 18,000 strike and then 18,400 strike.
The abovementioned data indicated that the trading range for the Nifty50 in the near term may be 18,000 to 18,600-18,700 levels.
The momentum indicator RSI moved flattish and sustained at 55 levels which indicates that the index has directionless momentum, for the time being, Vidnyan Sawant, AVP – Technical Research at GEPL Capital said.
The volatility index India, VIX, fell by 1.2 percent to 13.32 levels. Volatility being at lower levels may keep supporting the market and a major correction may be unlikely in the near term, experts observed.
The Bank Nifty opened lower at 43,456 and hit an intraday low of 43,379. However, the banking index recouped those losses in the initial hour itself and remained rangebound within 100 points in the rest of the session. The index closed with 75 points gains at 43,709 and formed a bullish candle on the daily charts.
“The Bank Nifty index is likely to witness consolidation in the range of 43,000-44,000 where the highest amount of open interest is built up on the Put and the Call side respectively,” Kunal Shah, Senior Technical Analyst at LKP Securities said.
He says the index has to break the range on either side for trending moves which may be seen after the key event of the Fed policy due on Wednesday.
The undertone remains bullish within the range and one should keep a buy-on-dip approach with immediate support seen at the 43,400 level, the market expert advised.
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