Stock Market Today, Nifty, Bank Nifty: Benchmark indices NSE Nifty 50 and BSE Sensex may trade flat on Tuesday amid muted global cues. The Nifty futures on the Singapore Exchange (SGX) were trading 15 points or 0.08% lower at 18,709.5 in today’s early morning trade. Asian markets were trading in mostly green – Hong Kong’s Hang Seng rose 0.23%, China’s Shanghai Composite index fell 0.30%, Asia Dow was up 0.21% and Japan’s Nikkei 225 rose 0.19%. The US market ended the overnight session in red – Dow Jones Industrial Average (DJIA) fell 0.59%, S&P 500 dipped 0.20% and the tech-heavy Nasdaq was down 0.09%. On Monday, the Nifty rose 59.75 points or 0.32% to 18,593.85 and BSE Sensex gained 240.36 points or 0.38% to 62,787.47. In sectoral indices, Bank Nifty jumped 163.80 points or 0.37% to 44,101.65, Nity Auto soared 1.26% while Nifty IT fell 0.30%.    

NSE Nifty 50 Outlook

Nifty support at 18583 and 18500 while resistance at 18640 and 18663

NSE Nifty 50 has developed a cooling-off setup on the weekly chart which indicates a pause in momentum for the time being. However, the undertone is still bullish as Market Breadth Thurst indicator has improved significantly. Nifty intraday strategy: Bearish with stop loss at 18663 for the target of 18500. Positional view: Buy on the dip – Target: 19000. First support at  18583 and then 18500 while resistance at 18640 and 18663, according to Rahul Sharma, JM Financial.

Nifty OI Data

“Nifty weekly expiry option chain witnesses 18500PE holding maximum exposure of over 2 lahk OI contracts, with 18600 adding the highest fresh OI additions of 0.68 lakh contracts. CE writers active at 19500 strikes –  again more than 2.23 lakh OI contracts, followed by 18600CE – also more than 2 lakh OI contracts, with various immediate strikes holding overall lakh contracts. PCR OI at 18600 is 1.2, which if increases will witness further short covering on the index,” said Shilpa Rout – Derivatives Lead Analyst, Prabhudas Lilladher Pvt Ltd.

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“Volume profile indicates Nifty has strong support around the 18450-18500 zone. Coming to the OI Data, on the call side, the highest OI was observed at 18600 followed by 18700 strike prices while on the put side, the highest OI is at 18500 strike price,” said Deven Mehata, Equity Research Analyst at Choice Broking.

Nifty may rise to all-time high of 18888 if it surpasses 18664

“The key support level to monitor for the Nifty is at 18417, while major obstacles lie at 18664. If the Nifty surpasses the 18664 mark, it could trigger a larger rebound towards its all-time high at 18888,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Nifty seems to have entered a consolidation phase

“Nifty seems to have entered a consolidation phase, with immediate support around 18500-18450, while immediate resistance is observed at 18650-18700. A sustained close above this crucial resistance level is needed to initiate a momentum move, and it appears that the markets are awaiting a trigger for this to happen,” said Rajesh Bhosale, Technical Analyst at Angel One Ltd.

Nifty could rally till 18650-18700 if it surpasses 18550

“Nifty has formed a small bearish candle which indicates indecisiveness between the bulls and bears. As long as the index is trading above 18550 the positive sentiment is likely to continue. Above the same, the index could rally till 18650-18700. On the flip side, below 18550, the selling pressure is likely to accelerate. Below which, the index could slip till 18500-18450,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.

Despite the sideways trend, Nifty undertone remains bullish

“Nifty sideways movement is accompanied by low trading volumes, suggesting a relatively lower level of market participation and activity. The index has a support at 18550 and a resistance at 18660. Despite the sideways trend, the overall undertone of the market remains bullish,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Bank Nifty Outlook

Bank Nifty first support at 44185 and then 44090 while resistance at 44393 and 44506

Bank Nifty has developed a cooling-off setup on the weekly chart which indicates a pause in momentum for the time being. Bank Nifty intraday strategy: Buy on dip with a stop loss placed at 43700. First support at 44185 and then 44090 while resistance at 44393 and 44506, according to Rahul Sharma, JM Financial. 

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Bank Nifty may trade within range of 43700-44300

“Bank Nifty is expected to continue to trade within the range of 43700-44300. This suggests that the index is likely to move sideways, lacking a clear trend,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Bank Nifty OI Data

“Bank Nifty monthly option chain data reflects on 44000 straddles continue to play tug of war, with CE writers holding overall more than lakh OI contracts at various strikes all the way till 47000CE.  PCR_OI at 44000 is nearly 1.25 and the sustenance above 44200 here will see 45000 zones on an immediate basis,” said Shilpa Rout – Derivatives Lead Analyst, Prabhudas Lilladher Pvt Ltd.

Bank Nifty may move towards 45000 if it sustains above 44050

“If Bank Nifty sustains above the range of 44050 on a weekly basis, it will start moving towards 45000 in the coming weeks. The resistance is at around 44000-44100 and the support is at around 43900-43950 till the time index breaks this range it is expected to remain sideways. Technical indicator RSI is at around 60 and is showing strength by sustaining above 50 levels,” said Mitesh Karwa, Research Analyst at Bonanza Portfolio Ltd.