Nifty 50 opened positively with a gap-up of +42.90 pts (+0.22%). Despite the positive opening, the index stayed within a fixed range throughout the day and closed with a gain of +0.19%.
- Prices in Nifty 50 continued to make higher highs, while the RSI indicator formed lower highs, which explains the weakening bullish momentum in the hourly timeframe. This pattern is known as Bearish Divergence.
- However, the support level remains constant in the range of 19330-19310. If this level is breached, we can anticipate that the index may decline towards the 19200 level, which served as resistance during the double-bottom breakout.
- As long as the support levels hold, the set-up continues to favour buying on dips.
Today, there were no significant news events that influenced stock movements.
Under the most popular configuration:
- 'Quick Short' closed positively for the day with +0.65%.
- While' Back Up', too, ended in green with +0.41%.
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The highest CE OI is 19500, and the PE is at 19300 levels. This suggests that the markets are expected to revolve around these levels in tomorrow's expiry.
Levels Worth Monitoring Tomorrow
Notable ITM & ATM CE writing was witnessed, reinforcing bearish sentiment for tomorrow's expiry.
19500 being the highest OI on the CE side and 19300 on the PE side. The index is almost 50 pts away from the 19500. Will the index open above this level tomorrow?
Keep an eye on the 19300 level for potential intraday pauses, as data and price support imply its criticality.
Disclaimer: The opinions expressed in this blog are personal views and should not be considered financial advice. Please do your own research and consult with a professional before you make any investment decisions.