After last week’s heavy selloff, the market showed recovery with a gain of 0.70% on December 23. Nifty 50 index climbed above 200-day EMA (23,700) giving positive signals for its further journey. However, the momentum indicator MACD has shown a negative trend on the daily and weekly charts. According to experts, Nifty may find its first major resistance at 23,850 and next big resistance at 24,000. On the downside, 23,700 and 23,550 will be important support levels.
Nifty 50: Support and resistance levels
- Critical level: 23,753
- Support (Pivot Point based):
- 23,672
- 23,619
- 23,534
- Resistance (pivot point based):
- 23,842
- 23,894
- 23,979
Nifty has formed a Doji and Inside Bar candlestick pattern on the daily chart, which shows indecision in the market.
- RSI: is at 38.6, which is giving a negative signal as it is in the lower band.
- Moving Averages: Nifty is still below 10, 20, 50 and 100-day EMA, but slightly above 200-day EMA.
Bank Nifty: Performance and important levels
Bank Nifty outperformed the benchmark Nifty 50 and formed a bullish Harami candlestick pattern, indicating a trend reversal.
- Critical level: 51,318
- Support (pivot point based):
- 51,107
- 51,016
- 50,868
- Resistance (pivot point based):
- 51,403
- 51,494
- 51,642
Fibonacci Retracement Based Levels:
- Resistance:
- 51,864
- 52,246
- Support:
- 50,672
- 49,787
However, Bank Nifty is still trading below all the major moving averages except the 200-day EMA.
Option Chain Analysis: Nifty and Bank Nifty
Nifty Call Option Data
- At strike of Rs 25,000:
- Maximum call open interest of 1.5 crore contracts.
- This will act as a major resistance level in the coming trading sessions.
Nifty Put Option Data
- At strike 23,500:
- Maximum put open interest of 1 crore contracts.
- This will be a major support level.
Bank Nifty Call Option Data
- At strike 54,000:
- Maximum call open interest of 33.06 lakh contracts.
Bank Nifty Put Option Data
- At strike of Rs 51,000:
- Maximum Put Open Interest of 24.46 lakh contracts.
India VIX and market mood
- India VIX:
- The volatility index declined from 15.07 to 13.52 with a decline of 10.3%.
- This is favorable for a bullish trend.
- Put-Call Ratio (PCR):
- Nifty’s PCR increased to 0.84 (was 0.8 in the previous session).
- This indicates bullishness in the market.
Experts Views: Signs of smart recovery
A Bullish Harami Cross pattern has formed on the daily chart, which indicates recovery in the market. According to experts, both Nifty and Bank Nifty are likely to improve in the coming days.
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