ACCORDING TO PIVOT CHARTS, THE KEY SUPPORT LEVEL IS PLACED AT 10,498.3, FOLLOWED BY 10,456.8. IF THE INDEX STARTS TO MOVE HIGHER, KEY RESISTANCE LEVELS TO WATCH OUT ARE 10,568.4 AND 10,597.
After a 3 percent drop in the previous week, bulls managed to regain control of D-Street on Monday with Nifty50 rising above 10,500. The index formed a small bullish candle on the daily candlestick charts which suggest that the rally could extend towards 10,700.
Investors are advised to stay cautious but technical indicators are suggesting that the pullback move could extend by another couple of trading sessions. The index closed below its key short-term moving averages such as 50-days exponential moving average (DEMA), and 5-DEMA.
The Nifty50 which opened at 10,518.20 rose to an intraday high of 10,555.50. It slipped marginally to hit an intraday low of 10,485.40 before closing 84 points higher at 10,539.75.
Albeit Nifty50 registered a small bullish candle it appears to be on a pullback mode after testing its 100-Days Moving average (DMA) in the preceding two trading sessions of last week.
Key Support & Resistance Level for Nifty:
The Nifty closed at 10,539.75 on Monday. According to Pivot charts, the key support level is placed at 10,498.3, followed by 10,456.8. If the index starts to move higher, key resistance levels to watch out are 10,568.4 and 10,597.
Nifty Bank:
The Nifty Bank closed at 25,701.60, up 0.93 percent. Important Pivot level, which will act as crucial support for the index, is placed at 25,538.73, followed by 25,375.87. On the upside, key resistance levels are placed at 25,811.13, followed by 25,920.67.
Call Options Data:
Indian Stock Tips Maximum call open interest (OI) of 56.96 lakh contracts stands at strike price 11,100, which will be a resistance for the February series, followed by 11,000, which now holds 52.85 lakh contracts in open interest, and 10,700, which has accumulated 38.63 lakh contracts in OI.
Call writing was seen at the strike price of 10,600, which saw the addition of 2.7 lakh contracts along with 10,7, which added 1.54 lakh contracts, along with 10,900, which saw the addition of 0.72 lakh contracts.
Call unwinding was seen at the strike of 10,400, which shed 2.89 lakh contracts and 10,500, which shed 2.57 lakh contracts.
