Nifty uptrendBulls continued to hold the fort for three days in a row despite fight with bears during the day on May 14.
The Nifty 50 started off the day on a flat note and gained strength after initial hour of volatility.
According to him, the next upside resistance to be watched around 22,300 and next 22,590 for the next one week.
If the index manages to give a decisive close above 48,000 mark, then uptrend looks likely in the coming sessions, experts said.
To sustain the upward momentum, the index needs to decisively surpass this mark, targeting the 48,500 level," Kunal Shah, senior technical & derivative analyst at LKP Securities said.
Nifty uptrend
Bulls continued to hold the fort for three days in a row despite fight with bears during the day on May 14. The Nifty 50 moved closer to 22,300 zone, which can be an immediate resistance for the index, followed by 22,500-22,600 levels, while the 22,000-21,900 zone is likely to be key support area for the index for the coming sessions but one should keep an eye on India VIX that remained elevated, experts said.
The Nifty 50 started off the day on a flat note and gained strength after initial hour of volatility. The index hit an intraday high of 22,270 in the afternoon trade and finally settled at 22,218, up 114 points or 0.51 percent, forming bullish candlestick pattern on the daily charts.
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The index moved closer to 50-day EMA (exponential moving average placed at 22,220) and middle of the Bollinger bands (22,325).
"A small positive candle was formed on the daily chart, which is indicating a confirmation of important higher bottom reversal at 21820 levels. As per the bullish pattern like higher tops and bottoms, one may expect further upside in the near term," Nagaraj Shetti, senior technical research analyst at HDFC Securities said.
According to him, the next upside resistance to be watched around 22,300 and next 22,590 for the next one week. "Key lower supports to be watched at 22,080 levels."
With the consistent uptrend in the benchmark index, the weekly options data suggested that the Nifty may face hurdle at 22,500-22,600 levels in the coming sessions, with support at 22,200-22,000 zones.
On the Call front, the maximum open interest was observed at 23,000 strike, followed by 22,500 strike and 22,600 strike, with maximum writing at 22,600 strike, then 22,500 and 22,700 strikes, while on the Put front, 22,000 strike owned the maximum open interest, followed by 21,000 and 21,500 strike, with maximum writing at 22,100 strike, then 22,000 and 22,200 strikes.
Bank Nifty
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The Bank Nifty extended uptrend for second straight session with formation of higher high, higher low, especially after support at rising support trendline in the previous session. The index jumped 105 points to 47,859 and formed bullish candlestick pattern on the daily charts.
If the index manages to give a decisive close above 48,000 mark, then uptrend looks likely in the coming sessions, experts said.
"The BankNifty witnessed a consolidated move throughout the session but failed to close above the resistance of 48,000. To sustain the upward momentum, the index needs to decisively surpass this mark, targeting the 48,500 level," Kunal Shah, senior technical & derivative analyst at LKP Securities said.
On the downside, he feels the support is situated at the 47,500-47,400 zone, presenting an ideal opportunity to initiate long positions in case of a dip towards this level.
Meanwhile, the volatility cooled down for the first time in last 14 consecutive sessions, favouring the bulls a bit, but for the market stability, it needs to settle down around 15 level. The India VIX, the fear gauge, declined 1.96 percent to 20.20 from 21.88 levels, after rising more than 102 percent in previous 13 sessions.
The broader markets also gained strength on Tuesday, with strong breadth. The Nifty Midcap 100 and Smallcap 100 indices rallied 1 percent and 2 percent respectively, while three shares advanced for every one declining share on the NSE.
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