Nifty 50 Continues Its Bullish Streak
In recent market updates, Nifty 50 is on a remarkable ascent, consistently achieving new highs. As of September 23, the index nearly touched the significant psychological milestone of 26,000 points. The bullish momentum has persisted across three consecutive trading sessions, driven by a robust Higher High-Higher Low formation. This indicates a continued trajectory towards crossing the 26,000 points mark in the near future. However, it is crucial for the index to maintain stability above this threshold.
Market Support Levels
For traders monitoring the Nifty, immediate support is identified at 25,800 points, with a further strong support level at 25,500 points. These levels are essential for maintaining the current upward trend.
Intraday Performance Overview
On the latest trading day, Nifty opened at 25,873 and consistently traded within the positive zone, marking a new intraday high of 25,956. It eventually closed at 25,939, up by 148 points, signaling a healthy bullish candlestick configuration on the daily chart. Additionally, momentum indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are also aligned positively, further supporting the bullish outlook.
Traders’ Insights and Market Sentiment
According to Shrikant Chauhan, Head of Equity Research at Kotak Securities, the formation of a bullish candle along with the ongoing uptrend in the intraday chart suggests potential for further gains. Nonetheless, he cautions that the market may experience a range-bound movement in the short term, due to potential overbought conditions. For day traders, a crucial support zone lies between 25,850 and 25,800, while immediate resistance appears in the range of 26,050 to 26,100. A downturn below 25,800 could trigger a reduction in bullish sentiment, prompting traders to consider exiting their long positions.
Options Market Analysis
Insights from the latest monthly options data reveal that the maximum call open interest is clustered around the 27,000 strike price, indicating this as a potential medium-term target for Nifty 50, alongside the 26,000 and 26,500 strikes. Furthermore, significant call writing has been observed at the 27,000 strike, followed closely by 25,900 and 26,400 levels. On the put side, the 25,000 strike holds the highest open interest, followed by the 25,500 and 25,700 strikes, with major put writing occurring at the 25,900, 25,800, and 25,400 strikes. This option data suggests that while 26,000 may serve as a next resistance point for Nifty 50, the support remains firm at 25,800.
Bank Nifty Performance
The Bank Nifty index has also demonstrated resilience, continuing its upward trend for the eighth consecutive session. It closed above the 54,000 mark for the first time, ending the day at 54,106, marking a gain of 313 points. The banking index showcased a bullish candlestick pattern, corroborated by positive momentum indicators on the daily chart.
Key Levels for Bank Nifty
Chandan Tapadia, Senior Vice President and Derivatives Analyst at Motilal Oswal Financial Services, suggests that Bank Nifty needs to sustain levels above the 53,750 zone to facilitate movement towards targets of 54,500 and 55,000. Conversely, primary support is seen at 53,750, with additional support at the 53,500 level.
Market Volatility Snapshot
Recently, market volatility has spiked, although it remains on the lower end, below 14 points. A continued rise and sustenance above the 15 point threshold may prompt caution among bullish traders. The India VIX, which serves as a barometer of market sentiment, increased by 7.78 percent, climbing to 13.79 from the previous 12.79 levels.
Disclaimer: The insights presented in this article reflect the personal views of the experts and do not represent the views of the website or management. Readers are encouraged to seek guidance from certified experts before making investment decisions.
