1. Green light for NIFTY50 and BANK NIFTY? - 3 key levels to watch on Tuesday

Green light for NIFTY50 and BANK NIFTY? - 3 key levels to watch on Tuesday

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Upstox

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4 min read • Updated: January 30, 2024, 10:32 AM

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Summary

Fueled by the positive start to the February series, the bulls reclaimed the 20-day moving average (DMA) on the NIFTY50 and carved a bullish marubozu candle on the daily chart. This decisive move sets the stage for the next challenge: conquering the 17 January high and the gap above it. Experts believe that if this gap is bridged and the index closes above 21,850 on the daily chart, it could pave the way for further gains.

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Key levels to watch out before opening bell

Asian markets update 7 am Indian markets look set for a positive start, with the GIFT NIFTY up 17 points. However, Asian markets are a mixed bag. Japan's Nikkei 225 is up 0.3%, while Hong Kong's Hang Seng Index is down 1.5% as investors grapple with the uncertainty surrounding Evergrande's liquidation order.

U.S. market update U.S. stocks started the week on a positive note, led by the gains in technology stocks. The Dow Jones drifted 0.5% higher to 38,333, while the S&P 500 rose 0.7% to 4,927. The tech-heavy Nasdaq Composite gained over 1% and closed at 15,628.

NIFTY50

  • February Futures: 21,855 (▲ 1.8%)
  • Open Interest: 2,47,810 (▲ 1.3%)

The NIFTY50 gained 2% on Monday, led by a stellar 7% rally in Reliance Industries. All the other major sectoral indices joined the upward march barring FMCG which was down 0.1%. Oil & Gas (+5.1%), PSU Banks (+2.4%) and Auto (+1.6%) led the way with the strongest gains.

Fueled by the positive start to the February series, the bulls reclaimed the 20-day moving average (DMA) and carved a bullish marubozu candle on the daily chart. This decisive move sets the stage for the next challenge: conquering the 17 January high and the gap above it. Experts say that bridging this gap and closing above 21,850 could pave the way for further advances.

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Meanwhile, on the open interest front, call option activity peaked at the 22,500 and 22,000 strikes. Put options were concentrated around the 21,500 and 21,000 strikes, suggesting some support in this area. For the February 1 expiry, traders expect the index to trade between 21,000 and 22,500.

30jan2.webp You can track open interest of the NIFTY50 here: https://pro.upstox.com/

BANK NIFTY

  • February Futures: 45,735(▲1.2%)
  • Open Interest: 2,20,398 (▼6.2%)

The BANK NIFTY staged a strong comeback on Monday after finding support at its 200-DMA. Gaining over 1%, the index closed above both its 100 DMA and Thursday's high, confirming the hammer candlestick pattern on the daily chart. However, experts caution that a close above the 46,500 level, which also coincides with the 50-DMA, is necessary for further bullish momentum.

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Options data for the January 31 expiry suggests a tight trading range for the BANK NIFTY, with significant call open interest concentrated at the 45,500 and 46,000 strikes. Meanwhile, put options are clustered around the 45,500 and 45,000 levels, providing some downside support. Based on this activity, traders are expecting the index to trade between 44,800 and 46,200 this week.

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You can track open interest of the BANK NIFTY here: https://pro.upstox.com/

FII-DII activity

In the cash market, the Foreign Institutional Investors (FDIIs) bought shares worth ₹110 crore, while the Domestic Institutional Investors (DIIs) purchased shares worth ₹3,221 crore.

To track the ratio of long and short open positions of FIIs in the index, log in to https://pro.upstox.com/ ➡️F&O➡️FII-DII Activity➡️FII Derivatives

Stock scanner

Long build-up: Coal India, GAIL, National Aluminium, Container Corporation of India and Steel Authority of India.

Short build-up: SBI Card and AU Small Finance Bank Bank.

To access a specially curated smartlist of most traded and active stocks, as well as the OI gainers and losers, simply log in: https://pro.upstox.com/ ➡️F&O➡️Options smartlist/Futures smartlist


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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