The market failed to continue its previous day’s upward move on October 21, with the Nifty 50 declining 73 points to 24,781, accompanied by negative overall breadth. The index still traded below the 20- and 50-day EMAs (Exponential Moving Average), which is a negative sign. Sustaining above these EMAs could bring the bulls back into play, but until then, weakness and rangebound trading may continue. A decisive fall below 24,700 could drag the index down to 24,500, a crucial support level, while 25,000 is likely to be immediate resistance on the upside, according to experts.
Here’s a summary of the key takeaways from the trade setup for Tuesday:
Nifty 50 Outlook:
- Current Level: Nifty 50 closed at 24,781, down 73 points.
- Resistance Levels: 24,927, 24,998, and 25,112.
- Support Levels: 24,699, 24,628, and 24,514.
- Key Indicators: The Nifty remains below the 20- and 50-day EMAs, indicating bearish momentum. A fall below 24,700 could lead to further declines towards 24,500, while a push above these EMAs could revive bullish sentiment.
Bank Nifty Outlook:
- Current Level: Bank Nifty closed at 51,963, down 132 points.
- Resistance Levels: 52,408, 52,578, and 52,854.
- Support Levels: 51,856, 51,685, and 51,409.
- Key Indicators: Although the Bank Nifty formed a bearish candlestick pattern, it remains above key moving averages. Sustaining above 52,300 is critical for a potential upward rally.
Options Data:
- Nifty Call Options: Maximum open interest at 26,000 (key resistance). Major call writing at 25,000.
- Nifty Put Options: Maximum open interest at 24,500 (key support). Significant put writing at 24,000.
- Bank Nifty Call Options: Maximum open interest at 52,500 (key resistance) with major call writing.
- Bank Nifty Put Options: Maximum open interest at 51,000 (key support).
Market Sentiment:
- Put-Call Ratio: Dropped to 0.81, indicating a bearish mood as more calls are being sold than puts.
- India VIX: Increased by 5.56% to 13.76, suggesting rising market volatility.
Trading Activities:
- Long Build-up: Noted in 9 stocks.
- Short Build-up: Observed in 84 stocks.
- High Delivery Trades: Certain stocks showed high interest in investment rather than trading.
Stocks Under F&O Ban:
- Added: IndiaMART InterMESH, Manappuram Finance, Piramal Enterprises.
- Retained: Aarti Industries, Bandhan Bank, and others.
Keep an eye on these levels and market indicators as you strategize your trades!
Disclaimer: The information provided in this analysis is for educational purposes only and does not constitute financial advice. Trading in financial markets involves substantial risks, and past performance is not indicative of future results. Please conduct your own research and consult with a certified financial advisor before making any investment decisions. The views expressed herein are solely those of the author and do not necessarily reflect the opinions of any affiliated organizations.
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