Signs of Indecision as Bulls and Bears Hold Back
Tuesday's trading session was nothing short of sluggish, as markets tiptoed along narrow price bands, unsure of their next move. Let’s break down what happened in the market — technically and in the derivatives space — and what traders should keep in mind for the day ahead.
Technical View: What the Charts Say
Technically, after a muted start, the market hovered between 24,500/83,600 and 24,600/83,900 price ranges throughout the day. A small candlestick formation on the daily chart and non-directional intraday activity on the intraday chart indicate indecision between bulls and bears.
Current Market Texture
We believe the current market texture is non-directional; perhaps traders are waiting for a breakout on either side.
Breakout Levels to Watch:
| Scenario | Trigger | Target |
|---|---|---|
🔼 Bullish | Breakout above 25,600 / 83,900 | Upside till 25,700–25,750 / 84,200–84,400 |
🔽 Bearish | Dismissal below 25,470 / 83,500 | Downside till 25,375–25,300 / 83,200–83,000 |
Bank Nifty Outlook
For Bank Nifty, expect a range bound activity between 57,100 and 57,650. On the dismissal of 57,100, it can again retest the level of 56,900 or 56,700 levels. Above 57,650, expect further bullishness.
Intraday Strategy
For the day, the strategy should be to buy Nifty if it crosses 25,600 with a stop loss at 25,500. On the other hand, below 25,470, create a short position with a stop loss at 25,600.
Derivatives Recap
Nifty moved in a narrow band of 25,500–25,600 and ended with a mild gain of 0.10%. Nifty Midcap 100 slightly underperformed with a 0.01% uptick.
Sector Performance
- Top Performers: PSU Bank, Energy
- Lagging Sectors: FMCG, Media
Options Data Insights
| Metric | Observation |
|---|---|
Significant Call side OI | 26,000 Call |
Significant Put side OI | 25,500 Put |
Put-Call Ratio (PCR) | 0.74 |
Max Pain | 25,500 |
VWAP Range | 25,420 – 25,635 |
Market Sentiment | Higher Put Writing vs. Call Writing → Mild Bullish Undertone |
Institutional Activity
Foreign Institutional Investors (FIIs) continued to pull money from the markets, while Domestic Institutional Investors (DIIs) stepped in as net buyers.
Takeaway for Traders
The market is at a crossroads, with bulls and bears both waiting for a clear signal. Until then, range-bound trades and cautious intraday moves may dominate. Keep a close eye on the breakout levels for directional clarity.
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