Bank Nifty Outlook Today By Dhupesh Dhameja, Technical Analyst, SAMCO Securities

The Outlook for Nifty Bank remains cautiously neutral, as the index struggles to maintain upward momentum against significant resistance at the 52,500–52,600 range—a strong barrier in recent trading sessions. Options data underscores this sentiment, with call writers maintaining their positions at higher strikes (52,000–52,500). However, a solid support zone around 50,900 to 51,000, historically a demand area, could attract short-term buyers, potentially setting the stage for a temporary bounce. Traders may consider a “Buy-on-Dips” approach, with immediate support at 50,800. If the index manages to break above 52,500, it may trigger short covering, propelling it toward the next resistance at 53,000. Conversely, failure to hold above the 50,800-support level could invite fresh short positions, with additional support emerging around the 50,300–50,200 area.

Nov 06, 2024, 7:41 am IST

Bank Nifty Options Market Insights By Dhupesh Dhameja, Technical Analyst, SAMCO Securities

Options data reflects a positive sentiment, with aggressive put writing overshadowing call activity, signalling a bullish bias. Key open interest clusters are seen at the 52,500-strike call (22.47 lakh contracts) and the 51,500-strike put (17.78 lakh contracts), indicating high activity in these levels. There’s notable trading in the 52,000–52,400 call range and the 51,500–51,900 put range, with strong resistance from call writers between 52,000 and 52,500 and reliable support from put writers around 51,500 to 51,900. Elevated call writing within the 52,000–52,500 range suggests sellers are reinforcing resistance at these levels, while cautious put writers are establishing support at key zones. The Put-Call Ratio (PCR) has risen from 0.68 to 1.05, bolstering the bullish outlook as put writers gain dominance. The “max pain” level currently sits at 52,000, positioning this as a critical point that could shape near-term trends.

Nov 06, 2024, 7:41 am IST

Nifty Bank Recovers from Lows, Nears Key Resistance with a Gain of 992 Points

The index has been forming a series of higher lows on the daily chart, creating a stable foundation for buyers at lower levels. Currently, Nifty Bank is nearing a crucial resistance zone between 52,500 and 52,600, which has consistently triggered selling pressure over the past month, further reinforced by substantial call writing within this range, said Dhupesh Dhameja, Technical Analyst, SAMCO Securities.

Nov 06, 2024, 7:39 am IST

Nifty Prediction Today By Dhupesh Dhameja, Technical Analyst, SAMCO Securities

On the daily chart, the index found solid support near the 23,800 level, forming a bullish harami candlestick pattern, with the RSI signalling a bullish divergence. Despite regaining the 24,000 mark, the index remains below the 10- and 20-day moving averages (DEMA), which, along with substantial call writing at 24,500 and above, establishes these levels as crucial resistance zones.

Nov 06, 2024, 7:38 am IST

Options Market Insights By Dhupesh Dhameja, Technical Analyst, SAMCO Securities

Options data reflects a cautious outlook, with call writing significantly outpacing put activity, indicating a bearish stance. The highest open interest is concentrated at the 25,000-strike call (79.95 lakh contracts) and the 23,500-strike put (51.33 lakh contracts). Active trading is concentrated in the 24,200–24,500 call range and the 23,800–24,100 put range. Strong resistance from call writers (Bears) in the 24,200–24,500 area contrasts with solid support around 23,800–24,100, reflecting a shift in resistance to lower levels amid bearish sentiment. Elevated call writing within this resistance zone suggests increased confidence among sellers, while put unwinding indicates a strengthening bearish outlook. The put-call ratio (PCR) has dipped from 0.79 to 0.67, reinforcing the cautious sentiment. Currently, the “max pain” level is situated at 23,900, likely playing a pivotal role in influencing the index’s movement.

Nov 06, 2024, 7:38 am IST

Nifty Outlook Today By Dhupesh Dhameja, Technical Analyst, SAMCO Securities

The outlook for the Nifty index is cautiously optimistic, with a bullish-to-sideways bias. The index has reclaimed the 24,000 mark, a level that has bolstered buyer confidence. On the daily chart, it remains above the 23,800-support level, underscoring buyers’ resilience at lower levels, as indicated by the bullish harami pattern and RSI divergence. However, the 24,500 mark, reinforced by call writing and the 10- and 20-day DEMAs, acts as immediate resistance. Sustaining below this level may invite additional selling pressure. A break above 24,550 could trigger short-covering, potentially driving the index toward the 25,000 resistances. Conversely, failure to maintain support above 23,800 could lead to further downside, with the next support around 23,500–23,400.