The Nifty 50 started off the day lower at 22,568, which was also its day's low and hit an intraday high of 22,711 amid volatility in afternoon.
Technically, he feels the immediate support is likely to shift higher towards the 22,550-22,500 mark, followed by 22,400, coinciding with 20 DEMA.
On the Put side, the 22,600 strike owned the maximum open interest, followed by 22,500 and 22,700 strikes, with maximum writing at 22,600 strike, then 22,700 and 22,300 strikes.
Bank NiftyHowever, the Bank Nifty continued to be under pressure for yet another session and held above the 49,000-mark.
The India VIX, the fear gauge, rallied 4.5 percent to 13.45 levels, taking total six-day gains to 32 percent.
Market Consolidates
The Nifty 50 has seen consolidation throughout session after the US Federal Reserve, as expected, maintained benchmark interest rates at 5.25-5.5 percent, and closed moderately higher on May 2. The consolidation is expected to continue further with immediate support at 22,500 level, but overall, the bullish undertone remains unchanged, hence traders are advised to continue with buy on dips strategy with a target of 22,800, experts said.
The Nifty 50 started off the day lower at 22,568, which was also its day's low and hit an intraday high of 22,711 amid volatility in afternoon. Finally, the index closed at 22,648, up 43 points and formed bullish candlestick pattern on the daily charts.
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"Despite insignificant changes in the price action as Nifty stayed near its last closure, the potential for growth is evident as sustainability at the higher grounds showcases a bullish undertone," Osho Krishan, senior analyst - technical & derivative research at Angel One said.
Technically, he feels the immediate support is likely to shift higher towards the 22,550-22,500 mark, followed by 22,400, coinciding with 20 DEMA. While on the higher end, the highs of 22,780-2,2800 remain a daunting task for the bulls to conquer, post which only we could eye for the 23,000 milestone for Nifty, he said.
On the weekly options front, the maximum Call open interest was seen at 22,700 strike, followed by 23,000 and 22,800 strikes, with meaningful Call writing at 22,700 strike, then 23,100 and 22,800 strikes. On the Put side, the 22,600 strike owned the maximum open interest, followed by 22,500 and 22,700 strikes, with maximum writing at 22,600 strike, then 22,700 and 22,300 strikes.
The above options data indicated that the 22,500 is likely to act as an immediate support for the Nifty 50 and crucial support at 22,300, with hurdle on the higher side at 22,700-22,800 levels.
Bank Nifty
However, the Bank Nifty continued to be under pressure for yet another session and held above the 49,000-mark. The banking index fell 166 points to 49,231 and formed small bodied bearish candlestick pattern with long upper shadow on the daily charts for yet another session, indicating selling pressure at higher levels, but managed to hold on to rising resistance trendline as a support.
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"Overall, the Bank Nifty can also consolidate. Key support on the downside is 49,000 – 48,900, while resistance is placed at 49,800 – 49,850. Overall, we expect some consolidation in both the indices," Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas said.
Meanwhile, the volatility maintained northward journey for sixth consecutive session, which may put the bulls at uncomfortable position. The India VIX, the fear gauge, rallied 4.5 percent to 13.45 levels, taking total six-day gains to 32 percent.
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