The Nifty50 continued to consolidate within the range of 19,620-19,875 for seven straight sessions and specifically on November 24, it traded in the range of 30-40 points before closing moderately lower. Hence, unless the index either decisively closes above 19,900 on the higher side or below 19,600 on the lower side, the rangebound trade is likely to sustain in the coming sessions, experts said.
On November 24, the Nifty50 settled at 19,795, down 7 points, and formed a small bearish candlestick pattern with upper & lower shadows, while on a weekly basis, it gained a third of a percent and formed a bullish candlestick pattern by making higher lows for the fourth consecutive session with taking strong support at 19,400, the 20-week EMA (exponential moving average).
"The daily momentum indicator has a positive crossover and thus this consolidation should be used as a buying opportunity," Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas said.
On the downside, he feels until the zone of 19,630-19,600 is held we can expect the upside momentum to resume over the next few trading sessions which can take the Nifty towards 19,900-19,930 zone.
On the options front, the maximum Call open interest was seen at 19,800, 19,900 and 20,000 strikes, with Call writing at similar strikes in a similar sequence, while the maximum Put open interest was visible at 19,800 strike followed by 19,000 strike and 19,500 strike with Put writing at 19,800 strike and then 19,000 strike and 19,600 strike.
The above monthly options data also indicated that 19,800-20,000 is the crucial resistance area for the Nifty50 with support at 19,600-19,500 levels.
Also read: Gainers and Losers: 10 stocks that moved the most on November 24
Bank Nifty
The Bank Nifty continued to perform better than the benchmark Nifty50 for the consecutive session, rising 192 points to 43,769 and forming a bullish candlestick pattern on the daily charts. The index climbed above the 20-day EMA (43,682), while it dropped below the 200-day EMA during the week but did not close below the same.
For the week, the banking index rose 0.4 percent and formed a bullish candlestick pattern with a long lower shadow on the weekly scale, indicating strong buying support at lower levels.
"The sentiment appears sideways in the short term. The level of 44,000 is poised to remain a pivotal point; a decisive move above this mark could potentially trigger a substantial rally for the index," Rupak De, senior technical analyst at LKP Securities said, adding on the downside, visible support resides around 43,500.
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