The Nifty ended lower for the second consecutive session on July 24, finishing below 19,700 amid selling in metal, FMCG, oil & gas and banking names.
After a flat start, the Nifty remained range-bound through the session but last-hour selling dragged it lower. The index closed 72.70 points, or 0.37 percent, lower at 19,672.30, forming a small bearish candle.
"The index has completed one leg of technical correction but a fresh uptrend rally is possible only after the dismissal of 19,750. Below the same, the market can slip till 19,600-19,575. On the other side, above 19,750 the index can rally till 19,800-19,835,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.
On the open interest (OI) front, on the call side, the highest OI was observed at 19,800 followed by 19,900 strike prices, while on the put side, the highest OI was at 19,500 strike.
Nifty Bank
After a firm start, Nifty Bank gave up the gains and slipped below 46,000. It closed at 45,923, down 0.33 percent from the previous session.
The banking index is seeing a tug-of-war between the bulls and the bears, resulting in a sideways movement. The option data indicates that call writers and put writers are actively participating at the 46,000 strike price. This suggests that market participants are uncertain about the direction of the index, leading to a potential sideways momentum, said Kunal Shah, senior technical & derivative analyst, LKP Securities.
If the index sustains below the 46,200 mark, it may open the way for further downside movement towards the support zone of 45,700-45,000, he added.
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