Introductions
Good morning friends, and welcome to Studyiq52.blog . So, talking about the market mood right now, India is just slightly up by 0.01. This means the market volatility or uncertainty level is a bit high, but not too much. However, the Nifty gave a pretty good close yesterday, up by over 166 points, which suggests there are good chances the market will open on a positive note today. And looking at the global markets, the US and Asian markets also closed positively yesterday.
We got to see that. At the same time, in the European markets, we saw a mixed closing. So, this is the intraday chart of Nifty that I’ve opened for you. If you look closely, yesterday’s trading session in the market was like a roller coaster for Nifty. It finally closed down by 98 points. So, technically, what happened? The morning range was around 24,700, and from there, the market saw a decent reversal in Nifty.
Nifty started falling straight down and closed at 98 points lower. What happened is that from the day's high, it dropped by 225 points. So, from a technical perspective, the current market direction of Nifty is non-directional. That’s why trading based on levels is really important right now. So, let’s discuss the key levels of Nifty. Here’s the daily chart of Nifty that I have in front of me.
The daily timeframe has opened. The last candle formation in Nifty is a bearish candle, which shows that sellers were quite active in Nifty yesterday. Now, I’ve marked these two levels because one is related to support and the other to resistance. The 24,420 level is related to support. If this 24,420 level breaks, Nifty could go down. Today, we can expect to see levels between 24,350 and 24,250 in Nifty.
You might get it. But if for some reason the market moves above 24,570, then today we could see levels between 24,700 and 24,775 in Nifty. So, this is a very crucial level, and as I mentioned earlier, today you should trade based on these levels. Make sure to note these levels down. This is the sensor chart I've opened for you on the daily timeframe. Here too, the last candle formed is a bearish candle, indicating that...
Sellers were really active in the Sensex market yesterday. Talking about levels, 85,000 is acting as resistance and 80,000 as support. Now, if the 80,000 support breaks and Sensex falls below that, we could see levels between 79,800 and 79,500 today. But if, for some reason, Sensex moves above 85,000, then we might see resistance around 81,000 to 81,200 today. So, make sure to note down these levels.
Here’s the chart for Sussex. This is the Bank Nifty chart I opened for you on the daily timeframe. Now, even here, the last candle formed is a bearish one, showing that sellers were pretty active in the Bank Nifty market yesterday. So, looking at all three—Nifty, Sussex, and Bank Nifty—we saw that sellers were quite active in yesterday’s market. That’s why I said the market direction right now is non-directional. So, you need to trade based on these levels. Now, if we talk about Bank Nifty...
Talking about support and resistance, the support levels are at 54,800, 54,500, and 54,100. This forms a strong support zone for Bank Nifty. On the resistance side, there’s a strong resistance zone around 55,350, 55,600, and 56,100 in Bank Nifty. So make sure to note these levels because you should trade based on these levels today. Looking at the derivative data, the resistance level for Nifty today is 25,000, as the most call writing has happened there. And when it comes to put open interest...
Talking about put writing, as you can see, the most put writing happened around the 24,000 level. So, for today, 24,000 will act as support for Nifty. Now, if we look at the PCR data, it’s at 0.73. This means the market sentiment is a bit cautious. Why? Because there’s more call writing happening compared to put writing. That’s the first point. The second is that across the markets – Bank Nifty, S&P BSE Sensex, and Nifty – sellers are quite active, so it’s a situation where you need to be careful.
Here's the sentiment. Tomorrow, the market might expire or settle around the 24,500 level. This is an important level, so make sure to note it down. Talking about institutional activity, FIIs sold shares worth 3,399 crores again yesterday, while DIIs bought shares worth 3,508 crores. So, if you look at it, institutional investors still don’t seem confident in the market at all. Except for just one day, FIIs have been continuously selling for quite some time now.
The market has been given a boost. But the DI, meaning domestic investors, still have pretty good confidence in the market right now. So friends, that’s it for live trading today. For more market updates like this, make sure to Follow to Studyiq52.blog’ Post. And definitely share this Blog with your friends and family, but don’t forget to share it with your trader friends and relatives too. Also, don’t miss our Intraday Inside Weight Nifty 50 program at 1:00 PM, especially if you’re into trading.
We do live trading in the market, so watching that show is really important for you because there we explain live option chains along with live charts and levels. So definitely don’t forget to watch it. I’ll catch you tomorrow morning with some new levels for Bank Nifty, Nifty, and S&P. Until then, signing off – this is Rishi. Thank you and have a profitable trading session today. >> Investments and securities market are subject to market risk. Read all the...
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Summary
The video presents a detailed market analysis and trading outlook for the Indian stock market, focusing primarily on Nifty, Sensex, and Bank Nifty indices. Currently, the Indian market shows slight positive movement with a 0.01% uptick, indicating low but present volatility and uncertainty. The previous day’s market session was characterized by a bearish trend, with Nifty closing 98 points lower after a significant 225-point intraday drop from its high. The presenter highlights the importance of level-based trading due to the non-directional nature of the market, emphasizing key support and resistance levels for Nifty, Sensex, and Bank Nifty. Globally, the US and Asian markets closed positively, whereas European markets showed mixed results.
Nifty’s technical chart reveals a bearish candlestick indicating strong seller activity, with critical support around 24,420 and resistance near 24,700-24,775. Sensex and Bank Nifty also reflect bearish trends with sellers dominating, with Sensex support at 80,000 and resistance at 85,000, and Bank Nifty support between 54,100-54,800 and resistance between 55,350-56,100. Derivative data suggests key resistance at Nifty 25,000 and support at 24,000, supported by high call and put option writing respectively. The Put-Call Ratio (PCR) of 0.73 indicates cautious market sentiment with more call option writing than puts.
Institutional activity shows Foreign Institutional Investors (FIIs) continuing to sell aggressively, while Domestic Institutional Investors (DIIs) are buying, reflecting contrasting confidence levels. The video concludes with advice to engage in level-based trading and promotes the Kotak Securities YouTube channel for further live trading insights.
Highlights
- 📈 Indian market shows slight positive movement but with existing volatility and uncertainty.
- 📉 Nifty closed 98 points lower after a sharp 225-point intraday drop, indicating bearish sentiment.
- ⚠️ Market currently non-directional; level-based trading is advised.
- 🛑 Key support and resistance levels identified for Nifty (24,420 support, 24,700 resistance), Sensex (80,000 support, 85,000 resistance), and Bank Nifty (54,100-54,800 support, 55,350-56,100 resistance).
- 📊 Derivative data suggests Nifty resistance at 25,000 and support at 24,000, with high option writing at these levels.
- 🔍 Put-Call Ratio at 0.73 signals cautious market sentiment with higher call writing.
- 🏦 Institutional investors: FIIs are net sellers, DIIs are net buyers, showing mixed confidence in the market.
Key Insights
- 📉 Bearish Market Sentiment Despite Slight Positive Openings: Although the market opened slightly positive, the overall sentiment remains bearish as highlighted by the significant intraday drop in Nifty and bearish candlestick formations across major indices. This suggests that sellers currently dominate, and traders should exercise caution.
- 🎯 Importance of Level-Based Trading in Non-Directional Markets: The market’s non-directional nature underlines the importance of trading based on established support and resistance levels rather than relying on directional bets. This strategy helps traders mitigate risk amid volatility and uncertainty.
- 📈 Critical Support and Resistance Levels as Trading Anchors: The identified support and resistance levels for Nifty, Sensex, and Bank Nifty provide clear decision points for traders. For example, Nifty’s support at 24,420 and resistance near 24,700-24,775 are crucial to monitor for potential reversals or breakouts.
- 💹 Derivative Market Data Confirms Technical Levels: The heavy call writing at 25,000 and put writing at 24,000 on Nifty options confirms these levels as significant barriers and cushions, respectively. This alignment of derivative data with technical analysis adds robustness to the trading strategy.
- 🕵️♂️ Put-Call Ratio Reflects Market Caution: A PCR of 0.73, indicating more call option writing compared to puts, points to cautious optimism but underlying fear. This suggests market participants are hedging against downside risks even as some anticipate upward movement.
- 🏦 Institutional Activity Highlights Divergent Market Sentiment: The continuous selling by FIIs contrasts with buying by DIIs, signaling a lack of consensus among institutional investors. FIIs’ selling pressure may reflect global concerns or profit booking, while DIIs’ buying shows domestic confidence or accumulation.
- 📺 Need for Live Market Analysis and Real-Time Updates: The promotion of live trading sessions and detailed analysis with option chains and charts underscores the dynamic nature of markets and the need for traders to stay informed with real-time data to make timely decisions.
The video provides a comprehensive overview of the current Indian market condition, emphasizing cautious, level-based trading strategies supported by technical and derivative data, while also considering institutional behavior and global market influence. It serves as a practical guide for traders navigating a volatile and uncertain market environment.
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