Nifty displayed a degree of volatility within its recent trading range but ultimately concluded the session just above the mid Bollinger line.
The prevailing outlook remains favorably biased towards an upward trajectory, with the next potential resistance levels manifesting at 19650 and 19850. Short-term support appears to be situated at the 19200 level.
It is noteworthy that Foreign Institutional Investors (FIIs) exhibited net selling activity amounting to -497.2 crores, while Domestic Institutional Investors (DIIs) demonstrated net buying activity totaling 700.28 crores.
Nifty Bank experienced an initial phase of profit-taking followed by a robust rally during the latter half of the trading day, ultimately concluding above the midpoint of its Bollinger bands for the second consecutive day.
This pattern signifies the likelihood of continued strength in the short term. Immediate resistance is firmly established at the 44,000 mark, with more formidable barriers positioned within the 44,600-44,700 range. On the downside, potential support is identified at the 43,200 level.
Midcap and Smallcap
Both the Midcap and Smallcap indices have sustained their upward momentum over the course of the past four trading sessions.
The Midcap index presently hovers in close proximity to a key trendline on its daily chart, suggesting further momentum may be realized upon surpassing the 32,300 level. Anticipated resistance levels for the Midcap and Smallcap indices are delineated at 32,600 and 38,400, respectively, while underlying support is expected to materialize at 31,600 and 37,450.
PCR (Put-Call Ratio)
The Put-Call Ratio (PCR) for both the Nifty and Nifty Bank reflects a moderately bullish sentiment in the market.
It is worth noting that the Nifty exhibits the most substantial open interest in call options at the 19,500 strike, while the most pronounced open interest for put options is anchored at the 19,300 strike.
In the context of the weekly expiration, call options dominate at the 44,000 and 44,500 levels for the Bank Nifty, with predominant open interest in put options concentrated around the 43,600 strike.
VIX (Volatility Index)
The Volatility Index (VIX) concluded the session at 11.19, marking an increase of 0.8%. This increment in VIX underscores the presence of heightened volatility in today’s trading session.
In today’s trading session, the Pharma sector emerged as the top performer, posting a notable gain of 1.3%. Conversely, the Realty sector experienced a decline of 1.3%.
Advance-decline statistics favored the bulls, with 1170 stocks advancing and only 908 stocks declining during the course of the day’s trading activities, underscoring the prevalent optimistic sentiment that currently prevails 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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