Nifty support at 18300, resistance seen at 18400-18500; key levels to watch out for in coming sessions | The Financial Express

Nifty support at 18300, resistance seen at 18400-18500; key levels to watch out for in coming sessions

On the options front, the piling up of OI is visible in the Nifty 50 index at18300 put strike, indicating nearby support.

Nifty support at 18300, resistance seen at 18400-18500; key levels to watch out for in coming sessions
Looking at the overall F&O data, we have witnessed a mixed trade in both indices. Image: Pixabay

By Sameet Chavan

The global cues were a bit on the sluggish side to start the day. However, we began the session on a flat note yesterday by shrugging off these developments. For the most part of the session, index consolidated in a slender range. But unlike previous sessions, the end was certainly not the same. We witnessed a nosedive in the last 30 minutes of trade on Thursday to conclude the session tad below the 18350 mark.

Also Read: Nifty likely to register new record high soon; stick to ‘buy on dip’ approach till positive trend intact

FIIs were net buyers in the cash market segment to the tune of Rs. 618 crores. Simultaneously, in Index futures, they sold worth Rs. 408 crores with a decrease in open interest, indicating long unwinding. Looking at the overall F&O data, we have witnessed a mixed trade in both indices. On the options front, the piling up of OI is visible in the 18300 put strike, indicating nearby support. While on the higher end, the piling up of positions could be seen at 18400-18500 call strikes, suggesting the intermediate resistances for the index. The stronger hands remained steady with their bullish bets as the ‘Long Short Ratio’ stood at 64%.

Although the tail end decline was a bit unpleasant for many traders, we must consider this as a weekly expiry adjustment. If it’s a genuine selling, the follow through needs to be seen in the coming session to break the support zone of 18300 – 18260. However, if this doesn’t happen, then this move should only be construed as a running correction. The structure remains very much intact and hence, we will not be surprised to see some buying emerging at lower levels. As far as resistance levels are concerned, 18400-18450-18525 should be seen as cluster for the coming session.

Also Read: Nifty likely to register new record high soon; stick to ‘buy on dip’ approach till positive trend intact

(Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One. Views expressed are the author’s own.)

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First published on: 18-11-2022 at 02:08:52 pm
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