F&O Manual| Indices trade higher; Nifty's next crucial resistance at 21150

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Indian benchmark indices are trading higher, with Nifty surpassing the psychological mark of 22,000. The next crucial resistance zone is situated at the 21,125-150 levels, representing all-time high levels.

Among sectors, Auto index up 1 percent, healthcare index up 1 percent, while power index down 0.3 percent. BSE Midcap and Smallcap indices up 0.5-1 percent.

At 12:34 hrs IST, the Sensex was up 345.42 points or 0.48 percent at 72,395.80, and the Nifty was up 124.70 points or 0.57 percent at 22,035.50.

Bars in red indicate the change in open interest (OI) of call writers, while the green bars show the change in OI of put writers

The Nifty PCR currently stands at the 1.087 level. Call writing was observed in the 21900-22000 strikes, while put writing was noted in the 21900-21800-21700 strikes, indicating that the anticipated range for the upcoming sessions might be 21700 on the downside and 22120 on the upside.

"For the first time since February 7, the Index has successfully closed above the 21900 levels. The critical support zone is now positioned at the 10-20 EMA zone of 21750-21800, with resistance at higher levels expected around the 22120-22100 zone. Below 21700, the Index could experience a continuation of the current downmove, reaching the 21550-21530 zone," stated Sudeep Shah, Head of Derivatives and Technical Research at SBI Securities.

Sheersham Gupta, Director and Senior Technical Analyst at Rupeezy, "The all-time high level of 46,370 made by Nifty Bank in September last year was a crucial support. That was breached in the past few days and Nifty Bank ultimately found support at its 200 DMA. Now this level after role reversal is acting as a resistance. If Nifty Bank holds firmly above this level an upmove can be expected in Nifty Bank. "

"On a 30-minute time frame, Nifty bank has crossed the falling trendline that it has been forming since 16th Jan. This also presents a bullish outlook for the index. However, the levels of 46500 and beyond that 47,000 are likely tough resistance for the index, " added Gupta.

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