Technical Analysis: The Nifty is forming a bearish candle; an upward advance requires a closure above 19,450

 Technical Analysis: The Nifty is forming a bearish candle; an upward advance requires a closure above 19,450

According to the data, 19,400 is probably going to be important for the Nifty to move in any direction. Experts estimate that support is at 19,300–19,250.

19,400 is critical for Nifty to go upward.

November 9, the weekly F&O expiration day, saw a range-bound yet tumultuous session that ended with a lower Nifty finish.

The index created a bearish candlestick pattern on the daily chart after opening higher at 19,457. It then moved in the 19,460–19,380 range and ended at 19,395, down 48 points from the previous level.

For the third session in a row, the index was unable to maintain its 19,450 level. Experts predicted that range-bound activity around 19,400 would continue, with support around 19,300–19,250, until it closes above 19,450.

The index was able to maintain both the 5-day EMA (19,360) and the 21-day exponential moving average (19,367), which may serve as the index's immediate support levels.

Technical research expert at HDFC Securities Nagaraj Shetti said, "At the moment, the market is facing barriers around 19,450-19,500 levels and there is an expectation of some more consolidation or moderate weakness in the short term before recording a decisive upside breakout in the near term."

Weekly options data suggested that 19,400 is probably going to be important for either side's direction.

Regarding options, the highest call open interest was at 19,400, then 19,500, and 19,600 strikes. Call writing was at 19,400, the 19,500 strikes. With putting at 19,400 strike, then 19,200 strike, the largest put open interest was at 19,400 strike, then followed by 19,300 & 19,200 strikes.

Nifty Bank

In the midst of turmoil, the Bank Nifty dropped over 200 points from the day's peak and ended 25 points ahead at 43,684. On the daily scale, it created a modest bullish candlestick with a lengthy upper shadow, suggesting selling pressure at higher levels. The five-day EMA (43,553) and the 21-day EMA (43,564) provided support.

The index managed to hold above the 43,500 support level but was unable to go over the 44,000 resistance level.

"As long as it stays over 43,500, the trend should continue to be sideways to positive going ahead. The present trend may be failing if the index drops below 43,500, in which case it may go towards 43,000–42,800, according to Rupak De, senior technical analyst at LKP Securities.