📷 Image Credits: Moneycontrol
The Indian market showcased a mixed trend as bears managed to overcome bulls for the first time in the last five consecutive sessions. The Nifty 50 recorded a slight decline of 34 points to 24,011, primarily due to profit-taking activities. Despite this, the index witnessed a weekly rally of 2.2 percent, hinting at a consolidation phase in the coming sessions. Key support is identified at 23,800-23,700 levels, with a potential resistance zone at 24,200-24,500.
Amidst the market scenario, experts suggest that the Nifty’s sustenance above 21,900, a crucial support level, will be vital for a bullish momentum. In case of a breakdown below 21,900, the index might experience downward pressure towards 21,775, followed by the support at 21,700.
Technical analysis indicates that the market is at a critical juncture, with the relative strength index (RSI) showing negative divergence. Despite this, short-term relief could be anticipated before a potential slide towards 22,700-22,600 levels. Immediate resistance is marked at 22,300 levels, adding a crucial layer to the market’s movement.
Additionally, the weekly options data sheds light on key levels and prospective movements within the market. The Nifty Call Options data reveals that the 25,000 strike holds maximum open interest, while meaningful Call writing is observed at the 22,800 strike. On the Put side, the 23,000 strike serves as a significant support level with significant open interest.
Furthermore, insights from the Bank Nifty Call Options data suggest a potential resistance at the 53,000 strike, emphasizing the importance of certain levels in guiding market sentiment. Alongside, the Bank Nifty Put Options data showcases key support and resistance levels for informed decision-making.
In conclusion, the current market landscape hints at a phase of consolidation with crucial support and resistance levels dictating the market’s trajectory. Traders and investors are advised to closely monitor these levels and market indicators for strategic positioning in the evolving market environment.
