Markets Open Weak but Bounce Back — Here’s What It Means
Technically, our market opened with a gap down on the backdrop of weak global sentiment. However, after an early intraday correction in the morning, the market took support near the 20-day SMA (Simple Moving Average) and reversed sharply. On the daily chart, it has formed an Inside Body candle, which indicates indecision between the bulls and the bears. We believe the market is currently witnessing range-bound activity, and the intraday setup suggests that non-directional activity is likely to continue soon.
Key Support & Resistance Levels
| Index | Support Zone | Resistance Zone |
|---|---|---|
Nifty | 24,800 - 24,700 | 25,250 - 25,350 |
Sensex | 81,500 - 81,000 | 82,700 - 83,000 |
Below 24,700/81,000, the uptrend may weaken.
Bank Nifty Outlook
For Bank Nifty, a higher lower support is placed at 55,700. Above this, it can bounce back towards 57,000-57,350. Conversely, if it slips below 55,700, it can decline towards the 50-day SMA or 55,000 and 54,800 levels.
Derivatives Snapshot
Market Recap
- Nifty fell 0.56% after intraday volatility.
- Nifty Midcap 100 outperformed with a 0.36% gain.
Options Market Insights
| Metric | Value |
|---|---|
Significant Call OI | 25,000 Call |
Significant Put OI | 25,000 Put |
Put-Call Ratio (PCR) | 0.98 |
Max Pain | 25,000 |
VWAP Range | 24,840 – 25,125 |
- Sentiment: Higher Call writing vs. Put writing → Cautious Undertone
Index Futures Positioning
| Instrument | Net Contracts |
|---|---|
Nifty Futures | -3,811 |
BankNifty Futures | -2,314 |
MidcapNifty Futures | -173 |
FinNifty Futures | -41 |
NiftyNext50 Futures | 0 |
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