Pre-market report: It is anticipated that the momentum, which has accelerated—particularly after plunging to a low of 21,800 and holding steady for three days—will continue in the upcoming sessions. On May 14, the Nifty 50 edged closer to 22,300, and experts predicted that this would be a barrier on the higher side.
A close above it might push the index to 22,400–22,500, with support at 22,100–22,000 levels. Some of the main elements supporting the momentum were the higher high and lower low formations, the defense of the rising support trendline, and the uptrend in the relative strength index (RSI), which rose from 38 levels on May 9 to 47.
Pre-market report
On May 14, the Nifty 50 gained 114 points to 22,218 and created a bullish candlestick pattern on the daily charts, while the BSE Sensex gained 328 points to 73,105. “It is sustaining a higher bottom shape on intraday charts, which is generally favorable.
According to head equities research at Kotak Securities Shrikant Chouhan, “We believe that the index has completed one leg of a pullback rally and that the 50-day SMA or 22,300 would act as key resistance areas for the bulls.”It is anticipated that the momentum, which has accelerated—particularly after plunging to a low of 21,800 and holding steady for three days—will continue in the upcoming sessions.
On May 14, the Nifty 50 edged closer to 22,300, and experts predicted that this would be a barrier on the higher side. A close above it might push the index to 22,400–22,500, with support at 22,100–22,000 levels. Some of the main elements supporting the momentum were the higher high and lower low formations, the defense of the rising support trendline, and the uptrend in the relative strength index (RSI), which rose from 38 levels on May 9 to 47.
“It is sustaining a higher bottom shape on intraday charts, which is generally favorable.” This was the statement by the head equities research at Kotak Securities Shrikant Chouhan, “We believe that the index has completed one leg of a pullback rally and that the 50-day SMA or 22,300 would act as key resistance areas for the bulls.” He believes that after 22,300, traders will face 22,400–22,425 as the next obstacle.
Conversely, he stated that a new selloff could only occur if 22,100 is rejected, below which the index may revisit the 22,050–22,000 range. The upswing, according to Jatin Gedia, technical analysis analyst at Sharekhan by BNP Paribas, is probably going to last until 22,308–22,423, which corresponds to the 50% and 61.82 percent Fibonacci retracement level of the preceding decline. In the immediate term, he stated that 22,040–22,000 is a critical support level on the downside.
While the Nifty Midcap 100 and Smallcap 100 indexes rose 1% and 2%, respectively, the larger markets beat the benchmark indices.
Also Read: how to analyze pre-market data
Data on Bank Nifty Put Options
With 24.43 lakh contracts, the 47,000 strike has the highest open interest on the put side, and it can serve as a crucial support level for the Nifty. The 47,500 strike, which included 22.51 lakh contracts, and the 47,800 strike, which included 15.48 lakh contracts, came next. The highest Put writing was observed during the 46,500 strike, where 11.53 lakh contracts were added. This was followed by the 47,900 and 47,800 strikes, where 5.29 lakh and 6.01 lakh contracts were added, respectively. At the 48,500 strike, put unwinding was noted, resulting in the shed of 29,340 contracts. 48,600 and 48,400 strikes that resulted in a decrease of 16,740 and 3,375 contracts, respectively, came next.
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