The market extended losses for a third consecutive session with the Nifty50 witnessing a fresh closing low of 2022 on June 14, as traders maintained caution ahead of interest rate decision by the US Federal Reserve.
The BSE Sensex fell 153 points to 52,694, while the Nifty50 declined 42 points to 15,732 and formed a bullish candle which resembles an Inverted Hammer kind of pattern formation on the daily charts.Normally, such Inverted Hammers at the lows indicate bottom reversal pattern post confirmation. The Nifty made a new swing low of 15,659 levels on Tuesday, which is near the crucial support of 15,700-15,650 levels (multiple swing lows); but there is no evidence of any sharp upside recovery emerging from near this important support," Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.
The inability of bulls to show any significant upside recovery from the important support (15,700-15,650) indicates chances of one more leg down to 15,600-15,500 levels before showing any significant upside bounce from the lows, the market expert pointed out, adding that"immediate resistance is placed at 15,850 levels".
The selling pressure was also seen in broader space as the Nifty Midcap 100 and Smallcap 100 indices declined 0.23 percent and 0.6 percent respectively amid weak breadth.
The volatility cooled down a bit but is still at higher levels, indicating a favourable trend for bears. India VIX, the fear index, fell by 2.13 percent to 21.89 levels.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks given in this story are the aggregates of three-month data and not of the current month only.
Key support and resistance levels on the Nifty
As per the pivot charts, the key support level for the Nifty is placed at 15,642, followed by 15,551. If the index moves up, the key resistance levels to watch out for are 15,840 and 15,948.
Nifty Bank
Nifty Bank declined 95 points to close at 33,311 on Tuesday, forming an Inverted Hammer kind of pattern on the daily charts. The important pivot level, which will act as crucial support for the index, is placed at 33,084, followed by 32,857. On the upside, key resistance levels are placed at 33,578 and 33,845 levels.
Call option data
Maximum Call open interest of 25.02 lakh contracts was seen at 17,000 strike, which will act as a crucial resistance level in the June series.
This is followed by 16,500 strike, which holds 21.47 lakh contracts, and 16,000 strike, which has also accumulated 20.17 lakh contracts.
Call writing was seen at 15,700 strike, which added 2.44 lakh contracts, followed by 15,800 strike which added 1.79 lakh contracts and 16,500 strike which added 1.25 lakh contracts.
Call unwinding was seen at 17,000 strike, which shed 63,600 contracts, followed by 16,800 strike which shed 37,350 contracts and 17,100 strike which shed 23,450 contracts.
