The Nifty initiated the trading day with a substantial gap up, positioning itself just above the previously mentioned horizontal trading range and the critical 19,300 resistance threshold.
The index sustained its upward trajectory throughout the session, culminating at its zenith for the day. Today’s trading activities unveiled a noteworthy surge in open interest (OI) on the Put side, along with a decline in OI on the Call side, signifying an imminent short-term uptrend.
The subsequent anticipated resistance levels are perched at 19,650 and 19,850, while prospective support is discerned at the 19,200 level.
FII net sell stands at -549.37 crores and DII net buy stands at 595.7 crores.
The Nifty Bank, likewise, saw a promising commencement above the pivotal 43,400-43,500 zone and rebounded from the same region during intraday trading. The index concluded the session above the mid Bollinger line, affirming the likelihood of sustained short-term momentum.
Immediate resistance is positioned at 44,000, with the subsequent significant hurdle residing in the 44,600-44,700 zone. Potential support is identified at the 43,200 level.
Midcap and Smallcap
Both the Midcap and Smallcap indices orchestrated an impressive rally throughout the trading day, culminating at 32,021 and 37,965, respectively, registering gains of 0.9% and 1%.
Market breadth and sentiment leaned favorably toward the bullish camp during today’s session, foreshadowing the continued prevalence of stock-specific movements in the short term.
Foreseen resistance levels for Midcap and Smallcap are at 32,600 and 38,300, while underlying support is anticipated at 31,600 and 37,450.
PCR (Put-Call Ratio)
The Put-Call Ratio (PCR) for Nifty and Nifty Bank stands at 1.08 and 1.1, intimating a mildly bullish sentiment.
Notably, the Nifty demonstrates its most substantial open interest in call options at the 19,500 strike, while the most pronounced open interest for put options is stationed at the 19,300 strike.
In the context of the weekly expiration, call options dominate at the 44,000 levels for Bank Nifty, with predominant open interest in put options gravitating around the 43,500 strike.
VIX (Volatility Index)
The VIX, emblematic of market volatility, escalated by 2% to conclude at 11.1, reflective of heightened investor trepidation and market instability.
In today’s trading session, the metal, energy, and pharmaceutical sectors exhibited notable upticks, surging by approximately 1.3%. Conversely, the PSU banking sector experienced a depreciation of 1.1%, serving as a substantial drag on the market.
Advance-decline statistics favored the bulls, with 1406 stocks advancing and only 675 declining during the day’s trading activities, underscoring the prevailing sanguine sentiment in the market.
About the Author
Ankit Jaiswal, our Senior Equity Research Analyst at Univest, brings over 8 years of experience in the stock market, financial analysis, and investing. With qualifications including the NISM Series VIII Equity Derivatives Certification and CMT Level 2, he’s a key asset, driving the insightful contributions to our research team.
Note – This channel is for educational and training purposes only & any stock mentioned here should not be taken as a tip/recommendation/advice
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