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4 min read | Updated on February 19, 2024, 07:40 IST
SUMMARY
On the daily chart, the NIFTY50 has crucial support at its 20-day moving average ( around 21,700). Experts believe that if the NIFTY50 closes above its all-time high (22,126), then the index could move out of its one-month consolidation zone of 1,000 points. Conversely, if the index breaches the 20-DMA, the next key support is at the 50-DMA (21,500).
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On the daily chart, the NIFTY50 has crucial support at its 20-day moving average (21,700).
The GIFT NIFTY is trading higher (+0.1%), indicating a positive start for the Indian equities today. Asian markets are trading in the red. Japan's Nikkei 225 is down 0.3% and Hong Kong's Hang Seng Index fell 1%.
U.S. stocks fell on Friday after data showed that the producer prices ( wholesale inflation) rose 0.3% in January. The reading was higher than the expectation of 0.1%. As a result, all the three major indices closed in the red. The Dow Jones slipped 0.3% to 38,628, while the S&P 500 dropped 0.4% and closed at 5,005. The tech-heavy Nasdaq Composite fell 0.8% to close at 15,775.
The NIFTY50 extended its winning streak for the fourth consecutive day, closing Friday's session higher. The index rebounded sharply from the 21,500 levels last week to close near its all-time high.
On the daily chart, the NIFTY50 has crucial support at its 20-day moving average (21,700). Experts believe that if the NIFTY50 closes above its all-time high (22,126), then the index could move out of its one-month consolidation zone of 1,000 points. Conversely, if the index breaches the 20-DMA, the next key support is at the 50-DMA (21,500).
The initial build-up of the option chain shows a significant call base at the 22,600 and 22,100 strikes. Conversely, the put base is established at 22,000 and 21,700 strikes. As per the initial build-up, NIFTY50 is expected to trade between 21,450-22,550 in the upcoming week.
Building on the gains of the last three days, the BANK NIFTY closed higher on Friday, supported by a rebound in PSU banks and select private banking heavyweights.
As previously mentioned in our Friday’s trade setup blog, the BANK NIFTY faces a hurdle between 46,500 and 46,800 zone, near the 50-DMA. Essentially, the index is currently trading between its 20-DMA (around 45,600) and 50-DMA (around 46,800). Traders should closely monitor the price action around these levels. A breakout on the either side could provide further directional clues.
For BANK NIFTY's February 21 expiry, the options data shows significant open interest at the 47,000 & 46,500 call option strikes and 46,000 & 44000 put option strikes. As per the open interest, traders eye BANK NIFTY’s trading range between 44,500 and 47,800 for current week’s expiry.
In Futures and Options or F&O, long build-up means an increase in Open Interest (OI) along with an increase in price, and short build-up means an increase in Open Interest(OI) along with a decrease in price.
Source: Upstox and NSE.
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