Its been a week of consolidation. The Nifty 50 index has barely moved through the week, getting stuck in a 200-point range. Thursday’s session was no different as the Nifty went back to its November 16 swing high of 19,875 but could not sustain above that level.
In case the index does manage to post a weekly gain, it will be its fourth straight weekly advance. The last instance of the Nifty gaining four weeks in a row was back in June and July this year.
The only positives, if any that have come out of this lacklustre week is the fact that the bulls are fighting to hold the 19,800 mark, while foreign institutions were net buyers on Thursday, the third such instance over the last 10 days.
The Nifty needs to close above the mark of 19,731 in order to post its fourth straight weekly gain.
Gautam Shah of Goldilocks Premium Research said that the market will find it difficult to easily sustain at higher levels and that supply is likely at higher levels. However, he said that 19,450 – 19,500 is a short-term base for the Nifty, which can be used as a trailing stop loss.
However, Shrikant Chouhan of Kotak Securities believes that the short-term texture of the market still remains on the positive side. He is also of the view that 19,850 remains a key resistance for the Nifty and only a break above those levels can take the index towards levels of 19,975.
The Nifty’s hourly chart is showing the formation of an ascending triangle, which is suggesting a probable upside breakout, said Rupak De of LKP Securities. He expects the trend to remain sideways till the Nifty holds above 19,700. Resistance remains at 19,850, above which, the index may move towards its previous record high of 20,200.
The Nifty Bank has been the underperformer this week and although the index ended higher on Thursday, it only managed to cover the deficit for the week. The index needs to close above 43,583 in order to post a weekly gain and it closed six points below that level on Thursday.
43,300 continues to stand as the make or break point for the index, said Kunal Shah of LKP Securities. An immediate upside hurdle is 43,700, above which the index can head towards 44,000. However, a break below 43,300 can drag the index lower towards 42,800 – 42,700 levels.
Ashwin Ramani of SAMCO Securities said that the level of 43,500 will continue to act as a strong support for the Nifty Bank. Only a decisive break either below 43,500 or above 43,800 will provide the tone for the next leg of move in the banking index.
What Are The F&O Cues Indicating?
Nifty 50’s November futures added 3.7% or 3.85 lakh shares in Open Interest. They are trading at a premium of 66.75 points from 72.25 points earlier. On the other hand, the Nifty Bank’s November futures shed 5% or 1.05 lakh shares in Open Interest. Nifty 50’s Put-Call Ratio is at 1.11 from 1.07 earlier.
Balrampur Chini and HPCL have entered the F&O ban list from today’s session, while BHEL and NMDC are out of the ban. Indiabulls Housing Finance, RBL Bank, Zee Entertainment, Hindustan Copper, MCX, Manappuram Finance and India Cements continue to remain in the ban period.
Nifty 50 on the Call side for November 30 expiry:
For next Thursday’s weekly expiry, which will also be the monthly expiry of the November series, the Nifty 50 call strikes between 19,800 and 20,300 have seen addition in Open Interest, with the 20,300 strike seeing the maximum addition.
Strike | OI Change | Premium |
20,300 | 31.1 Lakh Added | 3.45 |
20,200 | 25.88 Lakh Added | 6.1 |
19,900 | 20.71 Lakh Added | 74.8 |
19,800 | 15.19 Lakh Added | 132.7 |
Nifty 50 on the Put side for November 30 expiry:
On the Put side, the Nifty 50 strikes of 19,800, 19,300 and even 18,500 have seen addition in Open Interest for next Thursday’s expiry.
Strike | OI Change | Premium |
19,800 | 23.27 Lakh Added | 61.2 |
18,500 | 16.93 Lakh Added | 1.55 |
19,300 | 13.59 Lakh Added | 5.7 |
Here are the stocks which saw short covering during Thursday’s trading session, meaning an increase in price but decrease in Open Interest:
Stock | Price Change | OI Change |
PI Industries | 3.06% | -18.00% |
Balkrishna Industries | 2.11% | -14.68% |
Exide Industries | 0.05% | -14.39% |
IndusInd Bank | 1.17% | -14.36% |
Balrampur Chini | 1.46% | -12.60% |
These stocks saw unwinding of long positions on Thursday, meaning a decrease in both price and Open Interest:
Stock | Price Change | OI Change |
Delta Corp | -2.23% | -22.64% |
Zydus Life | -1.66% | -20.91% |
Aurobindo Pharma | -2.00% | -13.25% |
Dr Reddy’s Laboratories | -0.54% | -9.83% |
Grasim | -0.74% | -8.85% |
Here are the stocks to watch out for ahead of Friday’s trading session:
What Are Global Markets Indicating?
Asian markets have opened mostly higher this morning after assessing inflation data from Japan.
The Nikkei 225 is up 0.9% on its return from a holiday, while the Topix is up 0.7%. This despite the country’s core inflation rising to 2.9% in October, higher than the Bank of Japan’s 2% target.
South Korea’s Kospi is up 0.2%, while the Kosdaq gained 0.3% in early trade.
Hang Seng’s futures though, are pointing to a slightly negative start to the trading day.
No cues from Wall Street overnight as markets were shut on account of Thanksgiving. They will return for half a day of trade on Friday.
First Published: Nov 23, 2023 9:46 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.