technical perspective For any significant increases, the Nifty must hold steady around 21,500; until then, consolidation is evident

 technical perspective For any significant increases, the Nifty must hold steady around 21,500; until then, consolidation is evident

Options data also showed that 21,500 is a key resistance level that, if it is maintained over the next several days, might lead to 22,000, with levels of 21,400–21,300 providing immediate support.

Following a one-day decline, the Nifty 50 recovered and on December 19 reached 21,500 points for the first time, ultimately ending the day with modest gains. According to experts, consolidation may continue for a few more sessions with support around 21,300–21,200 levels before the index clearly crosses 21,500 if it doesn't start trading over 21,500 in the next days. The index may rise to 21,600 points.

The Nifty 50 began trading at 21,478 but dropped to 21,338 as a result of selling pressure. In the last trades, the index quickly bounced back and strengthened, setting a new record high of 21,505. Ultimately, there was some profit-booking, and the index finished 34 points higher at 21,453.

With a lengthy lower shadow, this has created a minor bearish candlestick pattern that suggests support-based purchasing at lower levels. The conclusion of the aforementioned pattern was near to the starting level, suggesting uncertainty among buyers and sellers about future market developments. This gives the pattern some similarities to a Doji type formation.

Technically, over the last two days, the index has seen range bound activity at higher levels. According to Shrikant Chauhan, Head of Equity Research at Kotak Securities, "on the downside, it is regularly finding support near 21,350, while it is regularly facing resistance near 21,500."

He predicts that the rangebound pattern will probably hold for as long as the market is moving inside the 21,350–21,500 range.

Thus, he suggested that the best course of action for day traders right now would be to buy on dips and sell on rises. "The market may retest the 21,300–21,250 levels, and the texture may shift below 21,350. However, the index may increase to 21,575 after a breakthrough of 21,500, he said.

An explicit buy-on-dip approach is also suggested by Omkar Patil, Technical & Derivatives Analyst, Institutional Equity, Ashika Group, particularly till the level of 21,200 is safeguarded on the downside. He thinks there's a chance the index can go up to 21,600 points.

The highest call open interest on the weekly options market was seen at 21,500 strike, which was followed by call writing at 21,500 strike, which was followed by 22,000 strike, and then 21,900 strike. The greatest put open interest was observed at 21,400 strike, which was followed by 21,300 strike. Using pen and paper at strike 21,400 and strike 20,800.

According to the options data above, 21,500 is a crucial resistance level that, if it is maintained over the next several days, will allow for a move up to 22,000, with levels of 21,400–21,300 providing immediate support.

bank nifty

After a negative opening hour, the Bank Nifty index recovered its intraday losses and closed 3 points higher at 47,871 in light activity. On the daily time frame, the index created a little bearish candle with a lengthy lower shadow, indicating buying activity at lower levels and support at 47,500 points.

"The index needs to stay above 47,750 and move up to 48,250 and then 48,500 levels. Support on the downside is anticipated at 47,500 and then 47,250 zone," said Chandan Tapadia, Senior Vice President of Motilal Oswal Financial Services' analyst-derivatives.

The Nifty Midcap 100 and Smallcap 100 indexes fell 0.4% and 0.1%, respectively, indicating that wider markets were under pressure.