24 July 2024 Punjab Khabarnama : The Nifty 50 smartly defended the 24,300 as well as the 24,400 levels amid volatility on a closing basis, while trading within the previous day’s range during the day on July 24, ahead of the monthly F&O expiry session tomorrow. The index seems to have digested the budget and is looking for cues from corporate earnings and global markets. As long as the index defends these levels along with VIX at a multi-month low, it may move towards the immediate hurdle of 24,600 in the coming sessions. Above that, the 24,855 all-time high can’t be ruled out, although momentum indicators remained negative, according to experts.
The Nifty 50 opened lower at 24,445 and remained ranged during the day. The index closed 66 points down to 24,414 with above-average volumes, continuing a downtrend for the fourth consecutive session after hitting a record high. It has formed a bearish candlestick pattern with a long lower shadow and a minor upper shadow on the daily charts, indicating volatile trade.
“Now the index has to hold 24,400 zones for an up move towards 24,600 and 24,750 zones, whereas supports are placed at 24,300 and then 24,200 levels,” said Chandan Taparia, Senior Vice President | Analyst-Derivatives at Motilal Oswal Financial Services.
According to the monthly options data, the maximum Call open interest was observed at the 25,000 strike, followed by the 24,800, 24,500, and 24,600 strikes, with maximum Call writing at the 25,000 strike, and then the 24,400 and 24,800 strikes. On the Put side, the 24,000 strike holds the maximum open interest, followed by the 23,500 and 23,800 strikes, with maximum writing at the 24,000 strike, and then the 24,100 and 23,500 strikes.
Bank Nifty
The Bank Nifty extended its downfall following the budget, falling 461 points or 0.9 percent to 51,317 amid volatility and continuing the lower high-lower low formation with high volumes on the monthly F&O expiry day. However, it defended the 50-day EMA (Exponential Moving Average 50,942) on a closing basis.
The sentiment might remain weak as it closed below its support level of 51,700 and its 21-day exponential moving average, Rupak De, Senior Technical Analyst at LKP Securities said.
Hence, according to him, a sell-on-rise approach might favour traders until the index closes above 52,000. “The support is placed at 50,900, where the 50-day EMA lies. On the other hand, resistance is seen at 51,550 and 52,000,” Rupak said.
Meanwhile, the further decline in volatility suggested that the bulls may not have major pressure from bears. The India VIX, the fear index, dropped 7.73 percent to 11.76, the lowest closing level since April 26 this year. It has also decisively broken down the upward sloping support trendline, which is favourable for bulls.