Technical View | Nifty forms bullish candle, 19,500 is the level to watch

19,500 crucial for major upmove on Nifty

The Nifty50 remained range-bound yet gain on November 10 but some late buying helped the index close with modest gains to close back above 19,400.

The index opened lower at 19,352 and traded in the red for most of the day before gaining late in the session. It closed 30 points higher at 19,425, forming a bullish candlestick on the daily charts.

The range of 19,300-19,500 needs to be broken on either side, while 19,300 seems to be strong support as it coincides with the 20-week exponential moving average (EMA) of 19,300). On the higher side, 19,450-19,500 remains the crucial hurdle. If the index decisively goes past 19,500, it can climb to 19,600-19,800, experts said.

For the week, the index gained 1 percent and formed yet another bullish candlestick pattern, making lower highs for the second consecutive week.

"The Nifty, as per the weekly chart, formed a small positive candle that placed the hurdle at 19,450-19,500 levels as per the concept of change in polarity. A decisive upside breakout above 19,500 levels could open renewed buying enthusiasm towards 19,800 and higher in the near term," Nagaraj Shetti, technical research analyst at HDFC Securities said.

The index will likely find support at 19,250-19,300 if is slides lower from the current position, he added.

Also read: Gainers and Losers: 10 stocks that moved the most on November 10

On the options front, the maximum Call open interest was at 19,500 strike followed by 19,400 strike and 20,000 strike, with writing at 19,400 strike, then 19,700 & 19,600 strikes. On the Put side, the maximum open interest was visible at 19,400 strike followed by 19,300 strike and 19,000 strike, with writing at 19,300 strike, then 19,400 strike.

The data also indicates that in the near term, 19,300 will be a critical support and 19,500 will be the resistance on higher side.

The market will open for an hour from 6.15 pm to 7/15 pm on Diwali, November 12, for “Muhurat trading”.

Bank Nifty

The Bank Nifty opened marginally lower and drifted towards 43,500 in the early hours but recovered later in the day to close at 43,820, up 136.5 points.

It formed a bullish candlestick on the daily charts. For the week, the index gained 1.2 percent and again formed a bullish candlestick.

"It has to continue to hold above 43,500 zone for an up move towards 44,000 then 44,250 levels, while on the downside, support is expected at 43,500 then 43,333 levels," Chandan Taparia, Senior Vice President | Analyst-Derivatives at Motilal Oswal Financial Services said.

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