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The bears have intensified their hold on February 11 by forcing the Nifty index underneath the midrange of the Bollinger Bands and even went as far as to snapping the February 3 low. The 1.3% drop was caused by worries over US levies, interrupting the higher-high, lower-low pattern and indicating additional trouble.
Market experts believe that if the Nifty emphatically breaches the 23,000 mark, it can further tumble towards 22,800 (which is close to January’s bottom). On the other hand, if the average bounces, the subsequent resistance level is likely to be around 23,300.
To assist traders in cashing in profits, there are significant support and resistance levels and additional notable market trends that should be considered.
For Nifty, Here Are The Key Support & Resistance Levels
Pivot Support Levels:
22,995
22,900
22,746
Pivot Resistance Levels:
23,304
23,399
23,553
Bank Nifty Key Levels
Resistance Pivot Levels:
49,774
49,947
50,225
Support Pivot Levels:
49,217
49,045
48,766
Fibonacci Resistance Levels:
50,368
51,159
Fibonacci Support Levels:
49,286
47,866
Nifty Option Chain Analysis
Nifty Call Option Data Analysis
A robust resistance level can be found at the highest Call Open Interest (OI) of 1.6 crore contracts standing at 24,000 strike.
Nifty Put Option Data Analysis
The strongest support in the following sessions will be at the highest Put Open Interest (OI) of 90.88 lakh contracts with a standing of 22,500 strikes.
Analysis of Bank Nifty Options
Data for Call Options Ranges of Bank Nifty
The leading Call OI of 15.1 lakh contracts is at the 51,000 strike level, representing a significant resistance point.
Put Options Ranges of Bank Nifty
The leading Put OI of 13.3 lakh contracts is at the 49,000 strike level which creates a significant support point.
Fund Movements of FII & DII
FIIs and DIIs cash movements are important for determining market direction. Understanding the trends in FIIs and DIIs funds can help understand the market.
Update on Volatility Index VIX
India VIX surged by 2.94% settling at 14.87 which resulted in further market volatility as the bulls struggle to take back control.
PCR Analysis
Nifty PCR fell to 0.69 on February 11 (previous session: 0.75).
Generally, this is what the data shows, PCRs greater than 0.7 generally suggest a bullish trend but those lower than 0.5 suggest a bearish trend.
A clear opportunity presents itself when the PCR is low , suggesting market weakness.
F&O Ban Stock List
These Derivative contracts are subject to the market-wide position limit MWPL and thus cannot be freely traded by retail investors.
Newly Added to F&O Ban: None
Already in F&O Ban: Manappuram Finance
Stocks Removed from F&O Ban: None
Market Outlook: What to Expect?
Bearish Bias Continues:
Declines extend towards 22,800 as the Nifty is anticipated to break below the obliterated support of 23,000.
In the event of a nifty positive rebound, Nifty would have to break 23,300 to re gain some upward momentum.
Bank Nifty's Resistance at 50,000+ Levels:
Intact resistance at 50,368 and 51,159.
Key support in the vicinity of 49,000.
Volatility Rising (India VIX At 14.87):
Market movements come with uncertainties as highly increased volatility does not help the situation.
Options Data Suggests Weakness:
Call OI peak at 24,000 (Nifty) & 51,000 (Bank Nifty) show signs of sturdy resistance.
While Put OI peak at 22,500 (Nifty) & 49,000 (Bank Nifty) suggest strong support zones.
Conclusion: How Should Traders Approach The Market?
For Bulls:
This analysis lateralizes to traders once we see RUPPEE breach over 23,300 (Nifty) and 50,368 (Bank Nifty) indicating bullish divergence.
Once above the key levels, traders can look towards strong stocks for buying opportunities.
For Bears:
Bank Nifty crossing 49,000 and nifty levels of 23,000 would definitely immerse us deeper into confirmed downtrends.
It does open extensive short selling solutions for traders as well as further declines.
I highly suggest you read the following lines carefully.
Nifty’s support levels are 22,995, 22,746.
Nifty’s resistance levels are 23,304, 23,553.
Bank Nifty support is 49,217, 48,766.
Bank Nifty Resistance is 49,947, 50,225.
Nonetheless, traders are advised to monitor the key levels and constantly manage their risks using stop-loss strategies.
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