Technical View | Nifty finally hits historic high of 19,000, now all eyes on 19,500

Stock Market

The Nifty50 hit a new milestone of the 19,000 mark on the monthly expiry day for futures & options contracts, June 28, with buying across sectors. The index took a week to surpass its previous record high of 18,887.60 today after the BSE Sensex reclaimed an earlier all-time high last week.

The index climbed above its critical resistance of 18,900 in the opening tick and extended an upward journey as the day progressed, though there was expiry-led volatility in the latter half. The index touched an intraday all-time high of 19,011 and ended at a record closing high of 18,972, up 155 points.

The Nifty50 has seen the formation of a bullish candlestick pattern on the daily charts, making higher tops and bottoms formation for the second consecutive session. The immediate support has shifted higher to 18,900, followed by the crucial support area of 18,800-18,600, whereas the 19,250-19,500 are the levels to watch out for in July series but in the meantime that some correction and consolidation can be possible, experts said.

"If the global market supports further, we may see Nifty entering the next cluster around 19,250–19,500. Before this, 19,050–19,150 are the immediate levels to watch out for," Sameet Chavan, Head of Research, Technical and Derivatives at Angel One said.

On the flipside, he feels the base has now shifted higher towards 18,700–18,600 which should be considered as a sacrosanct support zone. On an immediate basis, 18,850–18,800 is likely to provide a cushion in case of any intraday blip in the market.

He advised traders to stay upbeat and should focus on beaten-down pockets now, which may offer better trading opportunities in the next few days.

On the Option front, we have maximum Call open interest at 19,000 strike, followed by 19,100 strike and 19,500 strike, with Call writing at 19,000 strike, then 19,100 strike, while the maximum Put open interest was at 18,900 strike, followed by 18,700-18,800 strikes, with Put writing at 18,900 strike, then 19,000 strike.

The above data indicated that 18,900-19,000 is expected to be a crucial area for further direction on either side of the trade.

"The Nifty Index will slow its speed of rally beyond 19,200 and face some resistance at the 19,500 level owing to highest Call writers being present," Rahul Ghose, Founder & CEO at Hedged said.

Bank Nifty

He expects Bank Nifty to pace up in the next leg of this rally as even today we saw a significant build-up on it.

Bank Nifty maintained an uptrend for the entire session despite expiry-led volatility. The index opened higher at 44,420 and finally surpassed the critical resistance of 44,500 mark to hit an intraday record high of 44,508. It settled the session at 44,328, up 206 points.

The index has formed a bearish candlestick pattern on the daily scale but maintained higher highs and higher lows formation for the second straight day.

"Overall trend is strong with buy on dips stance. Now it has to hold above 44,250 levels, to make an up move towards 44,500 levels, then new life high of 44,750, whereas while on the downside support is expected at 44,250, then 44,044 levels," Chandan Taparia, Senior Vice President | Analyst-Derivatives at Motilal Oswal Financial Services said.

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