Pune;27/12/2023
In the ever-dynamic world of financial markets, investors keenly follow indices like Nifty to gain insights into market trends and make informed decisions. In the recent turn of events, Nifty has witnessed a notable rally, crossing the critical hurdle at 21,600. This blog delves into the technical aspects of Nifty’s performance, exploring key chart patterns, support and resistance levels, and what the data might indicate for the near future.
- Chart Analysis:
The daily chart of Nifty reveals a promising scenario marked by a long bull candle. The presence of positive chart patterns, such as higher tops and bottoms, suggests a strong bullish sentiment. Notably, Nifty is currently on track to form a new higher top, indicating a potential upward trajectory. Importantly, there is no confirmation of any higher top reversal at the current highs.
- Resistance and Support Levels:
Breaking through the immediate resistance at 21,550-21,600 levels, Nifty opens up possibilities for further upside. The analysis points towards potential targets around 22,000-22,200 levels in the upcoming week. On the downside, the immediate support is identified at 21,300, serving as a crucial level for market participants to monitor.
- Current Index Levels:
As of the latest update, Nifty stands at 21,654.75, exhibiting a gain of 213.40 points or 1.00%. The Bank Nifty and Sensex also reflect positive movements, with gains of 1.17% and 0.98%, respectively.
- Open Interest (OI) Data:
Examining the Open Interest (OI) data reveals significant OI on the call side, notably at the 22,000 strike, followed by the 21,800 strike. On the put side, the highest OI is observed at the 21,500 strike, suggesting key levels for options traders to monitor.
- Saucer Formation on Hourly Chart:
A closer look at the hourly chart unveils a saucer formation, indicating a potential continuation of the upward movement. The analysis points towards a probable ascent towards the 22,000 mark, with immediate resistance at 21,800-21,850. Bulls appear resilient, swiftly buying any minor dips in the market.
- Outlook and Closing Thoughts:
The overall outlook appears positive, with technical indicators supporting the notion of further upside. Traders are advised to keep a watchful eye on the identified support and resistance levels. The bullish gap around 21,500-21,480, coupled with the previous resistance at 21,600, is likely to act as a robust support zone.