The NIFTY50 index may settle between the 24,600 to 23,800 area, according to options data. It faces immediate resistance, though, around 24,350, the high from the previous week. The trend can continue to be sideways to negative unless the index closes back down to this level.
Asian markets at 7 a.m.GIFT NIFTY (-0.15%): 24,359 Nikkei 225: -0.36%, 38,069 Hang Seng (+0.10%): 19,442
Update on the U.S. market
Jones Dow: 44,910 (₲0.4%) S&P 500: ₲0.6%, or 6,032 Composite of the Nasdaq: 19,218 (₲0.8%)
With the Dow Jones and S&P 500 closing at their all-time highs at the conclusion of the holiday-shortened trading session, U.S. indices concluded Friday's session on a high note.
Investors will be eagerly observing the Bureau of Labour and Statistics' November jobs data next week. Ahead of the Federal Reserve's December 18th meeting, the jobs report is important because market players are hoping for a recovery from October's weak results, which were impacted by hurricanes and strikes. Markets are pricing in a 66% possibility of a rate cut at the Fed's year-end meeting as of Friday.
The NIFTY50
Futures for December: 24,155 (₲0.8%)
Interest that is open: 4,54,670 (₼3.5%)
Friday's session ended on a good one as the NIFTY50 index began the December series on a high note. On the daily chart, the index sent conflicting signals by forming an inside candle following the formation of a heavy bearish candle.
On the daily chart, the index's technical structure indicates range-bound action at the psychologically significant 24,000 mark. Traders might, however, concentrate on the high and low of the bearish candle generated on November 28 after the inside candle formed on Friday. Additional directional cues for traders will be provided by a break above the closing basis high or low of the bearish candle.
The greatest call base, 24,500, and put base, 24,000 strikes, were recorded in the open interest data for the December 5 expiry. This suggests that a range-bound between these levels is anticipated by market players. Traders can, however, prepare and carry out directional strategies appropriately if the index breaks these levels.
SENSEX
Maximum call OI: 83,000
Maximum OI: 77,000
Following a flat start, the SENSEX experienced a strong recovery, regaining the majority of the losses from the previous day and ending Friday's trading session with a healthy 1% gain. Similar to an inside candle on the daily chart, the index created a bullish harami candlestick pattern, indicating support-based buying at lower levels. This pattern, which emphasizes renewed purchasing activity and strength at crucial support zones, points to a possible sentiment flip.
A two-candlestick pattern called a bullish harami is made up of a big bearish candle and a smaller bullish candle. There is less selling pressure and possible buying momentum when the smaller candle's body is completely within the range of the preceding candle. However, if the next candle's close is higher than the smaller bullish candle, the pattern is confirmed.
At the same time, the index's immediate support is currently located in the 78,200 zone, while the resistance is seen at 80,500. The trend might remain range-bound unless the index closes below this range.
The 80,000 and 80,500 strikes have the biggest call base in the open interest data for the December 6 expiry, suggesting that selling pressure on the SENSEX may be present at these levels. On the other hand, the 79,000 strike was the largest put base, indicating that the index may find support at this level.
Activity FII-DII
Foreign Institutional Investors (FIIs) sold shares valued at ₹4,383 crore on Friday, remaining net sellers. Conversely, the Domestic Institutional Investors (DIIs) continued to be net purchasers, purchasing shares valued at ₹5,723 crore. Go to https://pro.upstox.com/ ➡️F&O➡️FII-DII Activity➡️FII Derivatives to monitor the proportion of long and short open positions of FIIs in the index.
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