Bulls were seen making a strong comeback in the market on Friday. The market managed to close with a gain of 2.5 per cent on February 25, making up for more than half the fall of the previous day. All the sectors were successful in closing in the green mark on the last trading day. BSE Sensex closed at 55,858 with a gain of 1,329 points. At the same time, Nifty closed at the level of 16,658 with an increase of 410 points. Nifty had formed a bullish candle on the last trading day. But for the index to show strength, it has to stay above the 200-day EMA for a few days continuously.
Mazhar Muhammad of Chartviewindia It says that multiple hurdles are being seen for Nifty in the zone of 16800-17065. This includes the Bearish Gap Zone as well as the 200-day EMA, whose value is seen around 16720. Nifty needs to stay above 16478 to show positive trend from sideways. In this process, initially it may be seen going in the zone of 16800 – 16850.
Conversely, if Nifty fails to stay above 16478. Then it can see a decline till 16200. Mazhar Muhammad says that for some time now one should wait for the index to stabilize before taking any trade.
In Friday’s trade, along with the big stocks, there was a rise in the small-medium stocks. Mid and small caps outperformed Sensex-Nifty on the previous trading day. The Nifty Mid Cap Index closed with a gain of 4.2 per cent and the Nifty Small Cap Index was up 4.8 per cent.
Market experts say that volatility has also come down significantly but it will have to go below 20 for some stability in the market. If this does not happen, the market will remain bearish friendly environment. On Friday, India VIX fell 16.4 per cent to 26.74.
Here we are giving you some such data, on the basis of which it will be easy for you to catch profitable deals. Please note here that the Open Interest (OI) and Volume of Stocks figures in this story are the sum total of three months’ data, not just the current month.
Key support and resistance levels for Nifty
The first support for Nifty is located at 16,508 and after that the second support is located at 16,358. If the index turns upwards, then it may face resistance at 16,779 then 16,899.
The first support for Nifty Bank is located at 35,904 and after that the second support is located at 35,378. If the index moves upwards, then it may face resistance at 36,821 then 37,211.
call option data
The maximum call open interest of 18.74 lakh contracts has been seen at the strike of 17000, which will act as an important resistance level in the March series. After this, the highest call open interest of 18.56 lakh contracts is being seen at 18000. At the same time, there is a call open interest of 16.25 lakh contracts at the strike of 17500.
Call writing was seen on the strike of 17500. 2.34 lakh contracts were added to this strike. After that 1.78 lakh contracts have been seen getting added even at 17800.
The maximum call unwinding was seen at the strike of 16500. After this, the maximum call unwinding was at 16400 and then 16200 strike.
put option data
The maximum put open interest of 50.22 lakh contracts has been seen at the 16500 strike, which will act as an important support level for the March series. After this, the highest put open interest of 42.02 lakh contracts is being seen at 16000. At the same time, there is a Put Open Interest of 34.80 lakh contracts at the 15500 strike.
Put writing was seen on the strike of 16300. 3.56 lakh contracts were added to this strike. After that 2.13 lakh contracts have been seen getting added even at 16500. Whereas 1.52 lakh contracts are attached at 16400.
The maximum put unwinding was seen at the strike of 17000. This was followed by the highest put unwinding at 17500 and then 16900 strike.
Mixed signals from global market
Global cues appear to be mixed. In Asia, Nikkei and SGX Nifty are seeing a quarter-percent increase, but a weakness of 500 points is seen in the dow futures. The deepening Ukraine crisis has raised concerns. On Friday, there was a good recovery in the US markets. The DOW had closed higher by more than 830 points. On the other hand, crude remains firm. Brent closed above $102.
Russo-Ukraine war came on the atom bomb!
The war between Russia and Ukraine continues. Putin put the nuclear force on high alert. Ukraine is ready for talks to reduce tension. Here the western countries imposed more restrictions. Some Russian banks have been kicked out of Swift. BP has also sold its entire 20% stake in Rosneft.
Cabinet approval for 20% FDI in LIC
A big decision of the cabinet has been taken before LIC IPO. In LIC and other entities like it, 20% FDI has been allowed through automatic routing. The way for foreign investors to invest in LIC issue will be cleared.
strategy on nifty
Talking about the strategy of Nifty today, Virendra Kumar of CNBC-Awaaz said that its first resistance zone is 16721-16766 and the bigger resistance zone is 16810-16845. Its first base zone is 16550-490 and the larger base zone is 16450-418. Retrieved 16550-500, this is a very important zone of the series. The 16500 put has the highest OI in the weekly, monthly contract. 16810-845 Large supply zone, Russia-Ukraine crisis escalates. Trade only above 16500-490, short below it. Below 16550-490 16450-418 Possible, last week’s low could also be seen. If 16721 comes out above, then 16766-810 can also be seen.
strategy on nifty bank
Talking about the strategy on Nifty Bank, Virendra Kumar of CNBC-Awaaz said that its resistance zone is 36710-36828 and the larger resistance zone is 36970-37110. Its base zone is 36220-36010 and the larger base zone is 35884-35770. First achieved 200 DEMA and then closed above it. 37100-36200 is the trading range according to the option. The Russia-Ukraine crisis escalates, the atmosphere may worsen. Fall will increase below 36200-36000, Thursday’s low is likely. 36710 turns out to be 36970-37110.
,