Technical View | Nifty sees range breakout in Muhurat trading, October high possible if holds 19,500

Further upmove possible if Nifty holds 19,500

The Nifty50 staged a nice range breakout in a one-hour Muhurat trading session on November 12 and closed at a three-week high, though it formed a bearish candlestick pattern on the daily charts as the closing was lower than opening levels. It was in the range of 19,300-19,467 since the start of this week. Hence, if the index sustains above 19,500, then there is a high possibility of the index moving towards the October high (19,850) in coming sessions, with crucial support remaining at 21-day EMA (19,386) and 19,300 levels, experts said.

The Nifty50 opened on a positive note at 19,547, which was also the day's high. It saw some profit booking at higher levels, but sustained above 19,500 throughout the session and settled at 19,526, the highest closing level since October 20, up 100 points, which was above the 50-day EMA (19,450).

"The 21-day EMA (19,386) displays a mild rising slope, which augurs well for bullish momentum if the Index manages to sustain above the same. The critical resistance was seen at 50-day EMA and 19,500-level, and with this being a Muhurat session, we would want to see confirmation of the index sustaining above the same," Viraj Vyas, CMT, technical & derivatives analyst | institutional equity at Ashika Stock Broking said.

The index underwent a deeper corrective move last month and currently bounced from the 200-EMA to the 19,500 level but stronger bullish momentum can be only witnessed above the 19,750-19,850-zone, he feels.

Options data also indicated that 19,500 is expected to be crucial for march towards 19,600-19,800 levels, with support at 19,400 & 19,300 levels.

The maximum Call open interest was seen at 19,500 strike, followed by 19,800 and 19,600 strikes, with Call writing at 19,600 strike, then 19,800 strike, while on the Put side, the maximum open interest was seen at 19,400 strike, followed by 19,000 strike & 19,300 strike, with writing at 19,000 strike, then 19,500 strike.

The Bank Nifty also performed well and jumped above 44,000 in the opening trade, but could not sustain the same on closing after trading around 100 points range. The index closed above the 50-day EMA (43,965), at 43,997, up 177 points and formed a bearish candlestick pattern with a lower shadow on the daily charts.

"The prevailing trend indicates a potential movement towards 44,500. The next resistance is near 44,800 only close above this level we could see s big move in the near term," Prashanth Tapse, Research Analyst, Senior VP Research at Mehta Equities said.

Meanwhile, the broader markets stayed strong with the Nifty Midcap 100 and Smallcap 100 indices rising 0.6 percent and 1.1 percent respectively.