The 200-point range continued on the Nifty 50 with the index failing to sustain above the 19,800 mark. Two good things that emerged from Tuesday’s session – One, the index may not be crossing 19,800 but is not capitulating under pressure either. The bulls are protecting the downside to the best they can.
Second, the Nifty snapped a three-day streak of making higher lows on the daily chart. Tuesday’s intraday high of 19,826 was the highest in the last four trading sessions. Even the intraday low of 19,754 was the highest in over a month.
Jai Bala of cashthechaos.com believes that there is a possibility of a Santa Claus rally for the Nifty and the global markets in December. He had mentioned earlier that if Nifty were to take out 19,850 on a closing basis, it is set for another all-time high.
“We saw a print of 19,875 on the 16th of November so probably the markets are going to all time high is the more probable event. I am anticipating record highs into the year end, but as I mentioned two weeks, three weeks ago, that’s probably going to be a major top, but this is a rally that needs to be played for the short term,” he said.
The short-term trend of the Nifty remains rangebound, said Nagaraj Shetti of HDFC Securities. However, he expects an eventual breakout on the upside of the 19,900 resistance. “The anticipated upside breakout could pull the Nifty towards a new all-time high,” Shetti said. Downside support is seen at 19,650.
Rupak De of LKP Securities advises traders to buy the dip as long as the index remains above the 19,500 mark. On the upside, a break above 19,850 will trigger a move towards 20,000 and beyond for the Nifty 50, he said.
The Nifty Bank closed above the 43,600 mark for the first time after November 13 on Tuesday. The gains came from the financial services index, which ended higher on its weekly expiry day. Wednesday will be the expiry for the Nifty Bank weekly contracts.
The Nifty Bank is currently sideways with lower volumes and remains in close proximity to its 20-DMA, said Kunal Shah of LKP Securities. 44,000 on the upside continues to remain an immediate resistance marked by higher call writing, and a break above that level can result in more short covering. Support on the downside is at 43,000.
Options activity at the 43,700 strike will provide further cues on the Nifty Bank’s direction, said Ashwin Ramani of SAMCO Securities. Om Mehra of SAMCO said that the directional movement on the index will occour only after the index breaks 43,900 upside.
What Are The F&O Cues Indicating?
Nifty 50’s November futures added 0.6% or 63,000 shares in Open Interest. They are trading at a premium of 57.9 points from 57.2 points earlier. On the other hand, Nifty Bank’s November futures shed 8.8% and 1.92 lakh shares in Open Interest. Nifty 50’s Put-Call Ratio is now at 1.02 from 1.91 earlier.
BHEL, Indiabulls Housing Finance, NMDC, RBL Bank, Zee Entertainment, Delta Corp, Hindustan Copper, MCX, Chambal Fertilisers, Manappuram Finance and India Cements continue to remain in the F&O ban list.
Nifty 50 on the Call side for November 23 expiry:
For this Thursday’s expiry, the Nifty 50 call strikes of 19,850 and 19,900 have seen addition in Open Interest, while the 19,700 and 19,750 strike have seen Open Interest shedding.
Strike | OI Change | Premium |
19,700 | 26.32 Lakh Shed | 130.4 |
19,750 | 21.75 Lakh Shed | 94.55 |
19,900 | 14.94 Lakh Added | 27.05 |
19,850 | 9.44 Lakh Added | 42.75 |
Nifty 50 on the Put side for November 23 expiry:
On the put side, the Nifty 50 strikes between 19,700 and 19,800 have seen addition in Open Interest. The 19,800 strike has seen the maximum Open Interest addition.
Strike | OI Change | Premium |
19,800 | 33.96 Lakh Added | 59.85 |
19,700 | 28.36 Lakh Added | 24.9 |
19,750 | 25.37 Lakh Added | 39.5 |
These stocks added fresh long positions on Tuesday, meaning an increase in both Price and Open Interest:
Stock | Price Change | OI Change |
Indian Energy Exchange | 3.04% | 9.18% |
SBI Life | 2.52% | 7.20% |
IRCTC | 0.90% | 6.60% |
Aurobindo Pharma | 3.26% | 4.70% |
Oberoi Realty | 3.95% | 4.60% |
These stocks saw fresh shorts added on Tuesday, meaning a decrease in price but increase in Open Interest:
Stock | Price Change | OI Change |
IndiaMART | -1.41% | 7.13% |
CONCOR | -0.01% | 6.19% |
Persistent Systems | -0.14% | 2.72% |
LTIMindtree | -0.58% | 2.60% |
Britannia | -0.48% | 2.52% |
Short covering was seen in these stocks on Tuesday, meaning an increase in price but decrease in Open Interest:
Stock | Price Change | OI Change |
L&T Technology Services | 1.34% | -10.48% |
Ashok Leyland | 3.71% | -8.47% |
Balrampur Chini | 1.18% | -7.48% |
Chambal Fertilisers | 1.64% | -7.14% |
Laurus Labs | 1.73% | -5.37% |
Some stocks saw unwinding of long positions on Tuesday, meaning a decline in both price and Open Interest:
Stock | Price Change | OI Change |
Vodafone Idea | -2.46% | -16.89% |
BHEL | -0.92% | -8.06% |
NMDC | -0.50% | -6.79% |
Siemens | -0.32% | -6.07% |
REC | -1.84% | -5.74% |
Here are the stocks to watch out for ahead of Wednesday’s trading session:
What Are Global Cues Indicating?
Asian markets have opened mostly lower after minutes from the US Federal Reserve’s October meeting revealed that policy officials had little appetite for rate cuts.
The Kospi in South Korea is down 0.6% at the start of trade, while the Kosdaq is down 0.1%. The Nikkei 225 though is up 0.1%, while the Topix is up 0.2%.
Futures on the Hang Seng are pointing towards a volatile trading session and a weak start to the trading day.
Benchmark indices on Wall Street snapped a five-day winning streak post the Fed minutes. The Dow Jones fell 0.2%, as did the S&P 500. THe Nasdaq declined 0.6%.
First Published: Nov 21, 2023 10:06 PM IST
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.