Sensex, Nifty set for a strong start; key levels to track on August 13

The Put-Call Ratio (PCR) has dropped sharply from 0.99 to 0.65, highlighting the stronger stance of call-side participants.

Benchmark indices Nifty and Sensex are set for a positive start today, rebounding from yesterday’s choppy trade that saw quick profit-taking at higher levels. Around 8 am, Gift Nifty was quoting at 24,628, up 125 points or 0.51 percent.

On Tuesday, Indian benchmark indices reversed early gains to close in the red on August 12, putting the brakes on bullish momentum ahead of key inflation readings from both India and the US. Broader markets painted a mixed picture—smallcaps outperformed midcaps—while the India VIX, a gauge of near-term market volatility, eased.

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Foreign Portfolio Investors (FPIs) were net sellers to the tune of Rs 3,399 crore worth of shares in Indian equities, while domestic institutional investors (DIIs) net bought Rs 3,508 crore worth of shares, according to provisional NSE data.

Here are the key levels to watch out for in today's session

The Nifty remains locked in the 24,700–24,300 range, and a breakout beyond these levels will determine the next trend. While strong support zones have held firm and helped build a base, the index remains under key moving averages, keeping sentiment cautious. For the past four sessions, this narrow range has acted as a pivotal zone. A breakout could align with the 200-DEMA and an unfilled gap, potentially setting the stage for a trend move. The index has repeatedly faced rejection at its 100-DEMA near 24,590; a sustained move above this level could spark short covering. On the downside, a break below 24,340 may extend the fall towards 24,200, where the 200-DEMA is placed. The daily RSI hovers around 40, showing no convincing reversal signals. Overall, the setup suggests a sideways bias, with range-bound strategies continuing to hold merit.

"The index remains trapped in a consolidation zone of 55,600–54,900, with repeated false moves keeping traders on edge. While supports continue to hold firm and have created a notable base, the price remains below key moving averages, keeping sentiment fragile," Dhupesh Dhameja of SAMCO Securities said.

"Over the last four sessions, the index has repeatedly failed to break out of this zone, making it a crucial inflection point. A decisive close above 55,600 could trigger a momentum shift in line with the 100-DEMA, while sustained trade above the 10-DEMA at 55,543 may open the door for short-covering rallies. On the downside, a break below 54,900 could pave the way towards 54,450, where strong historical support lies. The daily RSI remains below 40, signalling a lack of bullish momentum. Given this setup, a “range trading” approach appears the most tactical for now," he added.

India VIX inched up 0.12 percent to 12.23. Despite global market headwinds, volatility remains contained, signalling expectations of consolidation rather than a steep correction. This suggests caution, but not outright panic, among market participants.

The Put-Call Ratio (PCR) has dropped sharply from 0.99 to 0.65, highlighting the stronger stance of call-side participants. If the ratio falls below 0.7 or moves towards 0.5, then it indicates selling in Calls is higher than selling in Puts, reflecting a bearish mood in the market.

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