F&O Manual | Bank Nifty is expected to close at 48,000 as selling pressure pushes it below 48,100

 F&O Manual | Bank Nifty is expected to close at 48,000 as selling pressure pushes it below 48,100

The three times periods with the greatest OI concentrations—48,100, and 48,200 CE—indicate a writing situation. Once the index exceeds the 47,900-point barrier, traders should brace themselves for a decline; at that time, the closing position should be about at the 48,000 level.

Sector-wise, PSU bank index was down 0.5%, whereas IT, FMCG, oil, and gas were up 0.5% to 1%.

Thanks to gains in IT, FMCG, and oil and gas companies, Indian benchmark indexes achieved intraday records. The Nifty and Bank Nifty are going through a little decline, with support levels around 21,450 and 47,600, respectively.

The daily chart's candlestick pattern indicates that bulls are resilient at lower levels but cautious at higher ones. Although momentum indicators point to greater overbought circumstances, this configuration suggests a positive indication.

By midday, the Nifty was up 74.60 points, or 0.35 percent, at 21,527.70, while the Sensex had gained 200.60 points, or 0.28 percent, at 71,637.79. 1,752 shares of the total number of shares increased, 1,444 shares decreased, and 83 shares stayed the same.

bank nifty

Bank Nifty Weekly Final Prospects

Selling pressure can be seen in both of these CEs near the 48,000 and 48,100 levels, according to options data. The Bank Nifty is predicted to conclude below 48,000 points, with the trend remaining negative at the weekly close.

The writing situation is reflected by the largest Open Interest (OI) concentrations at 48,000, 48,100, and 48,200 CE. After the index exceeds the 47,900 barrier, traders can anticipate a decrease; the spot is anticipated to stay in the 48,000 range till expiration. Technically, the index might drop to 47,800, and if there's no rebound, it can drop to 47,600. According to Stockbox's technical and derivatives expert Avadhoot Bagkar, resistance on the expiration day is still above 48,050 points.

He suggests that traders open long positions in 48,100 PE in the 110–100 zone, hold 60 as the support level, and aim for the 180–220 range.

The Open Interest (OI) of Call Writers is represented by red bars, while the Open Interest (OI) of Put Writers is represented by green bars.

"A notable accumulation in call writing was seen at strikes 21,500 and 21,600. There was also a significant amount of open interest on the put front, particularly at 21,400, 21,300, and 21,200. In general, a day's range of 21,380 on the downside and 21,380 on the upside is anticipated. 21,630 "Sudip Shah, SBI Securities' head of futures and technical analysis, said.

As the market gets closer to Christmas week and there aren't any big triggers, we anticipate periodic consolidation to continue. Dips may be routinely purchased at this time, but at higher levels, care is suggested. "Immediate support is identified around 21,350, followed by bullish gap support at 21,200," stated Angel One.

The only way a meaningful price correction can start is if these levels are broken. As a crucial obstacle on the upside, the 200 percent reciprocal retracement of the October month lows forms the range of 21,550 to 21,600. The brokerage business said, "Traders are advised to closely monitor these levels and formulate their strategies accordingly.”