The bulls took a break on October 7 after a run-up in the previous two sessions, with traders cautious ahead of the US jobs data, which was largely in line with street estimates. The employment rate in the US fell to 3.5 percent, indicating that the Federal Reserve may continue with aggressive policy tightening.
The Sensex declined 31 points to 58,191, while the Nifty slipped 17 points to 17,315 to form a small-bodied bullish candlestick on the daily charts.
The consolidation is expected to continue, with crucial support at 17,000. A major upside is seen only after a decisive close above 17,450-17,500, experts said.
“The consolidation movement may be extended in the early part of the next week and the market could eventually witness a sharp upside bounce from the lows by next week,” Nagaraj Shetti, Technical Research Analyst at HDFC Securities said.
A decisive upside breakout of the hurdle of 17,450 would likely pull Nifty towards another important resistance of 18,000-18,100, Shetti said. Immediate support is at 17,200, the market expert said.
The broader markets saw a mixed trend as the Nifty midcap 100 index was down 0.24 percent and the smallcap 100 index gained 0.24 percent.
We have collated 15 data points to help you spot profitable trades:
Note: The open interest (OI) and volume data of stocks are the aggregates of three-month data and not just of the current month.
Key support, resistance levels for the Nifty
As per the pivot charts, the key support for the Nifty is at 17,242 followed by 17,169. If the index moves up, the key resistance levels to watch out for are 17,362 and 17,410.
Nifty Bank
The Nifty Bank fell more than 100 points to 39,178 and formed another Doji pattern on the daily scale on October 7. The important pivot level, which will act as crucial support, is placed at 38,912 followed by 38,646. On the upside, key resistance is at 39,340 and then 39,501.
CALL OPTION DATA
The maximum Call open interest of 30.70 lakh contracts was seen at 18,000 strike, which can act as a crucial resistance in the October series.
This was followed by 18,500 strike, which holds 17.25 lakh contracts and 17,500 strike, which has 17.2 lakh contracts.
Call writing was seen at 18,000 strike, which added 3.55 lakh contracts, followed by 18,200 strike that added 1.15 lakh contracts and 17,300 strike, which added 1.14 lakh contracts.
Call unwinding was seen at 18,400 strike, which shed 3.1 lakh contracts, followed by 17,400 strike that shed 1.16 lakh contracts and 17,200 strike, which shed 91,650 contracts.
