The index continued higher tops, higher bottoms formation for second straight session, though formed bearish candlestick pattern on the daily charts following Doji pattern in previous session.
The index hit a day's low of 22,349, before closing the session at 22,368, up 32 points.
"The positive chart pattern like higher tops and bottoms is intact on the daily timeframe chart.
The above options data suggested that the Nifty may face hurdle at 22,400-22,500 levels on the higher side, with crucial support at 22,000 level.
India VIX, the fear index, plunged 19.72 percent to 10.20, the lowest level since July 28, 2023.
Equity Market Volatile
The Nifty 50 ended a rangebound and volatile session moderately higher on April 23, continuing its northward journey for three days in a row. The index continued higher tops, higher bottoms formation for second straight session, though formed bearish candlestick pattern on the daily charts following Doji pattern in previous session.
Hence, the index is expected to be consolidative in the coming sessions with resistance at 22,400-22,500 levels and support at 22,200 zone, experts said, adding if the index manages to close decisively above 22,500, then it can march towards record high of 22,776.
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The Nifty 50 opened higher at 22,447, which was also its intraday high, and remained highly volatile during the day, but did not fall below previous closing level. The index hit a day's low of 22,349, before closing the session at 22,368, up 32 points.
"The positive chart pattern like higher tops and bottoms is intact on the daily timeframe chart. Having formed a new higher bottom on April 19 at 21,777, the chances of higher top formation is likely," Nagaraj Shetti, senior technical research analyst at HDFC Securities said.
He feels the near-term uptrend status of Nifty remains intact and the short-term trend is choppy. "Further consolidation or minor dip could be a buying opportunity. A sustainable move above 22,500 could open next upside towards 22,800 levels. Immediate support is at 22,200 level," he said.
On the monthly options front, the maximum Call open interest was seen at 23,000 strike, followed by 22,400 and 22,500 strikes, with meaningful Call writing at 22,400 strike, then 22,800 and 22,700 strikes. On the Put side, the 22,000 strike owned the maximum open interest, followed by 21,500 strike, and 22,100 strike, with writing at 22,100 strike, then 22,400 and 21,500 strikes.
The above options data suggested that the Nifty may face hurdle at 22,400-22,500 levels on the higher side, with crucial support at 22,000 level.
Bank Nifty
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The Bank Nifty gained for third consecutive session, but failed to hold on to 48,000 mark on closing basis. The index rose 46 points to 47,970 and formed bearish candlestick pattern on the daily charts as the index closing was lower than opening levels, but continued higher highs, higher lows formation for yet another session. It lost more than 300 points from day's high.
"The Bank Nifty remained consolidative in a narrow range of 200 points between 47,900 to 48,100 zones and momentum is missing at higher zones. Now it has to continue to hold above 47,777 levels for an up move towards 48,250 then 48,500 levels," Chandan Taparia, senior vice president | analyst-derivatives at Motilal Oswal Financial Services said.
However, on the downside, support is expected at 47,777 then 47,500 level, he feels.
The volatility cooled down significantly, giving more comfort for bulls. India VIX, the fear index, plunged 19.72 percent to 10.20, the lowest level since July 28, 2023.
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