After the initial rally in yesterday’s trade, trading was seen in the range and at the end of trading the market closed in a light red mark. Traders are looking cautious ahead of the results of the US Fed meeting. Apart from this, the results of some IT, FMCG, pharma and metal companies have also hurt the sentiments of the traders.
The Sensex had closed 109.40 points down at 60,029.06 in the trading of November 2. At the same time, Nifty closed at 17,889 level, down 40.70 points. Nifty formed a bearish candle yesterday closing below the opening level on the daily chart.
Nagraj Shetty of HDFC Securities Says that a small negative candle has formed on the daily chart which is indicating some lightening of the recent bullish trend. The rapidly improving environment that has come recently still persists. Fresh rally from these levels may negate the short term negative chart pattern. Tuesday’s small range candle was seen forming near an important overhead resistance at 18,050.
Although there was a slight decline in Nifty on Tuesday, but the overall market was breadth positive. In yesterday’s trade, there was more rally in the small-medium stocks than the giants. This is a good sign for the market. In yesterday’s trade, the Nifty Midcap 100 index had gained 0.83 percent and the Nifty Smallcap 100 index had gained 1.02 percent.
Nagraj Shetty says that from a broader perspective, the basic trend of Nifty remains positive. Immediate resistance is visible for this at 18,050 level. Hopefully Nifty will break it soon. After this it will be seen going towards 18,300.
Key support and resistance levels for Nifty
The first support for Nifty is located at 17,820.27 and after that the second support is located at 17,751.63. If the index turns upwards, then it may face resistance at 17,984.87 then 18,080.83.
Nifty Bank
The first support for Nifty Bank is located at 39,650.2 and after that the second support is located at 39,362. If the index turns upwards then it may face resistance at 40,167.1 then 40,395.8.
call option data
The maximum call open interest of 22.78 lakh contracts has been seen at the strike of 19000, which will act as an important resistance level in the October series. After this, the highest call open interest of 21.02 lakh contracts is being seen at 18000. At the same time, there is a call open interest of 19.15 lakh contracts on the 18500 strike.
Call writing was seen on the strike of 17900. This strike added 2.1 lakh contracts. After that 1.91 lakh contracts have been seen getting added even at 18000.
The highest call unwinding was seen on the strike of 17800. After this, the highest call unwinding was on the strike of 17700 and then 17600.
put option data
The maximum put open interest of 23.06 lakh contracts has been seen at the strike of 17000, which will act as a key resistance level in the October series. After this, the highest put open interest of 22.23 lakh contracts is being seen at 17500. At the same time, at a strike of 18000, there is a Put Open Interest of 18.14 lakh contracts.
Put writing was seen on the strike of 17900. 2.24 lakh contracts were added to this strike. After that 1.4 lakh contracts have been seen getting added even at 17000. Whereas 1.15 lakh contracts are linked at 17500.
The maximum put unwinding was seen at the strike of 17800. This was followed by the highest put unwinding at the strike of 17700 and then 17400.
Update released………
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