Technical Analysis: The Nifty is forming a bullish candle; the level to monitor is 19,500

 Technical Analysis: The Nifty is forming a bullish candle; the level to monitor is 19,500

Experts claim that support is around 19,300 and that the index has to close above 19,500 in order for buying activity to continue.

19,500 is necessary for a significant Nifty advance.

The Nifty50 gained on November 10 while being in a range, thanks to some late purchasing that allowed the index to conclude with slight gains and go back over 19,400.

At 19,352, the index began the day down and moved in the red for the most of the day before closing the session higher. On the daily charts, it formed a bullish candlestick as it finished 30 points higher at 19,425.

Given that it aligns with the 20-week exponential moving average (EMA) of 19,300, 19,300 seems to be a sturdy support level. However, the range of 19,300–19,500 has to be broken on either side. The critical barrier is still 19,450–19,500 on the upper side. Experts predicted that if the index breaks beyond 19,500, it may rise to 19,600–19,800.

The index finished the week with a 1% gain and another bullish candlestick pattern, setting lower highs for the second straight week.

According to the weekly chart, the Nifty created a little positive candle, which indicated the obstacle was at the 19,450–19,500 levels based on the idea of polarity shift. In the immediate run, a strong upward breach over 19,500 levels would spark fresh buying fervor towards 19,800 and higher, according to HDFC Securities technical research analyst Nagaraj Shetti.

If the index declines from its present position, he said, it would probably find support around 19,250–19,300.

Regarding the options, the highest call open interest was at 19,500, 19,400, and 20,000 strikes. Creating was at 19,400, 19,700, and 19,600 strikes. Following writing at 19,300 strike, then 19,400 strike, the largest open interest on the put side was apparent at 19,400 strike, followed by 19,300 strike, then 19,000 strike.

Additionally, the data suggests that 19,300 will serve as a crucial support in the near future and that 19,500 will act as resistance on the upper side.

On November 12, the market will open for "Muhurat trading" for an hour, from 6.15 to 7:15 p.m. Diwali.

Nifty Bank

After beginning the day somewhat lower and veering below 43,500 in the early going, the Bank Nifty rebounded to conclude at 43,820, up 136.5 points.

On the daily charts, it created a bullish candlestick pattern. The index finished the week up 1.2% and once again produced a bullish candlestick.

Chandan Taparia, Senior Vice President | Analyst-Derivatives at Motilal Oswal Financial Services, said, "Building a the contrary, support is expected at 43,500 subsequently 43,333 levels. It has to keep holding onto the above 43,500 zone for an up move towards 44,000 then 44,250 levels."