Nifty Extends Recovery as Volatility Eases

MUMBAI, 29 OCTOBER: Nifty ended the session at 22,936.75, up 1.05%, forming a bullish candle. It closed above 22,800, a level where the index had failed to close above on multiple occasions, and now holds comfortably above the 20 SMA, placed around 22,700. A double bottom formation is also slowly taking shape. The next hurdle is around 23,220, where the 50 SMA is positioned.

The RSI is now holding above the 50 mark. India VIX dropped 7% to 15.12, slipping below 16, supporting the bullish move. The advance-decline ratio has also improved.

On the Derivatives front, Put OI increased at 22,800 and 22,900, while Call OI at 22,800 declined, turning the earlier hurdle into a support zone. Maximum Put OI is at 22,700, followed by 22,500. Call OI is concentrated at 23,000, followed by 23,400. The PCR stands at 1.18 for the monthly series and 1.44 for the weekly series, indicating a supportive setup.

The immediate support is placed at 22,800, followed by 22,700. On the upside, 23,000 is the immediate resistance, followed by 23,200.

Nifty Bank ended the session at 54,909.65, up 1.18%, forming a strong bullish candle. The index opened lower but recovered to close above 54,500, the previous session’s immediate resistance. The middle Bollinger Band is positioned around 55,000.

The RSI rose to 47 from around 40. The Nifty PSU Bank index surged 2.20%, while the Nifty Private Bank index gained 1.24%.

On the Derivatives front, Put OI was added across the 54,500 to 55,000 strikes, while Call OI declined at 54,500 and 55,000. Call OI is concentrated at 56,000, followed by 55,000, while maximum Put OI is at 55,000, followed by 54,000. The PCR rose to 0.97 from 0.94, indicating a relatively balanced setup.

The immediate support is at 54,500, followed by 54,300. On the upside, 55,200 is the immediate resistance, followed by 55,600.

– Om Mehra, Technical Research Analyst, SAMCO Securities

(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing)

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