TECHNICAL VIEW: VOLUME-LED RALLY ON F&O EXPIRY DAY SUGGESTS NIFTY MAY HIT 24,100-24,200 SOON

Bulls remained in a strong position, taking the Nifty 50 beyond the much-awaited psychological 24,000 mark for the first time in history. The index continued its northward journey for the fourth consecutive session, especially after the formation of a bullish Three White Soldiers candlestick pattern in the previous session, with above-average volumes on the June F&O expiry day, on June 27. Hence, the index is likely to march towards 24,100-24,200 at the start of the July series, starting on June 28, followed by 23,400, if it manages to hold 24,000, experts said.

The Nifty 50 opened higher at 23,882 and gained major strength in late morning deals. The index hit a new intraday all-time high of 24,087.45 in late trade, before ending the monthly F&O expiry session at a fresh closing high of 24,044.50, up 176 points or 0.74 percent. It has formed a long bullish candlestick pattern for the fourth consecutive session with a positive bias in momentum indicators, indicating strong optimism among participants.

"After the formation of a bullish pattern like 'three advancing soldiers' on Wednesday, Nifty continued to surge higher. This is a positive indication," Nagaraj Shetti, senior technical research analyst at HDFC Securities, said.

Hence, he feels the underlying trend of Nifty continues to be positive. "A sustainable move above 24,000-24,100 levels could pull Nifty towards another Fibonacci extension resistance of around 24,380-24,400 levels in the near term. Immediate support is placed at 23,800 levels," he said.

On the monthly options front, the maximum Call open interest was observed at the 24,100 strike, followed by the 24,000 and 24,200 strikes, with maximum Call writing at the 24,100 strike, and then the 24,300 and 24,200 strikes. On the Put side, the 24,000 strike holds the maximum open interest, followed by the 23,500 and 23,900 strikes, with maximum writing at the 24,000 strike, and then the 23,900 and 24,100 strikes.

The above options data indicated that the Nifty may face immediate resistance at 24,100-24,200 levels, with support at the 24,000 and 23,900 zones.

Bank Nifty

The Bank Nifty maintained a higher highs-higher lows formation for three days in a row and hit a fresh intraday record high of 53,181 but snapped a three-day winning streak due to profit-taking and closed at 52,811, down 59 points. The index has formed a bearish candlestick pattern with upper and lower shadows, resembling a High Wave kind of pattern on the daily charts. The formation of such patterns at the top generally indicates a downward move, but it needs a bearish trend in the follow-up session for such confirmation.

Overall, the Bank Nifty index experienced volatile moves, trading in a broad range with support at 52,700 and resistance at 53,100.

"The index needs to decisively sustain above 53,000 for a continued move towards the 53,400/53,700 mark. However, it is trading in overbought territory, and failure to sustain above 53,000 could lead to a correction towards the 52,500/52,000 levels," Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said.

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2024-06-27T11:33:08Z dg43tfdfdgfd