Gift Nifty indicators suggest a favorable opening for the Indian benchmark index, with Gift Nifty trading around the 19,743 level compared to Nifty futures’ previous close at 19,488.
After a one-day hiatus due to a holiday on November 14, domestic benchmark equity indices experienced a half-percent decline on Monday, influenced by mixed global cues. The Sensex concluded 325.58 points lower at 64,933.87, while the Nifty 50 retreated by 82.00 points to settle at 19,443.55 on November 13.
Analyzing the daily chart, it’s observed that Nifty 50 formed a small negative candle, filling the opening upside gap from Sunday’s special session.
Nagaraj Shetti, Technical Research Analyst at HDFC Securities, remarked on the current positioning of Nifty 50, noting its consolidation around the resistance of the down trend line at 19,550 levels. Despite this, Shetti remains optimistic about the near-term trend, stating that while there’s a crucial overhead resistance in the range of 19,550-19,600 levels, some additional consolidation or minor weakness may precede a decisive upside breakout of the resistance.
Open Interest Data
Mandar Bhojane, Research Analyst at Choice Broking, examined Open Interest (OI) data, noting the highest OI on the call side at 19,500, followed by the 19,800 strike prices. Conversely, the highest OI on the put side was observed at the 19,400 strike price, suggesting a potential sideways movement for Nifty, according to Bhojane.
Nifty 50 Analysis
Nifty 50 faced challenges in maintaining levels above 19,500, encountering selling pressure that led to a retreat towards 19,400. Rupak De, Senior Technical Analyst at LKP Securities, highlighted resistance near a crucial Fibonacci Retracement level, signaling potential bearish movement in the short term. Support is identified at 19,300, with resistance observed at 19,550.
Bank Nifty Overview
Bank Nifty struggled to sustain levels above the psychological milestone of 44,000, concluding 0.24% lower at 43,891 on Monday. Despite this, the index closed above the crucial moving average, and the Relative Strength Index (RSI) indicated a bullish crossover. Rupak De expects short-term sideways movement, with support at 43,500 and resistance at 44,200.