The Indian market wiped out morning gains and witnessed an intraday movement of nearly 200 points on November 12. The Nifty took support at its 13-days exponential moving average (EMA) placed around 10,455 and formed a strong bearish candle on the daily charts.
The index breached its 5-EMA on the downside, bounced back from 13-EMA but failed to close above 10,500 levels. The next crucial support for the index is placed at 10,440. A close below this level could take the index towards 10,132 levels, suggest experts.
The index formed a Hanging Man kind of pattern in the previous trading session and formation of a bearish candle on Monday confirms the formation of an intermediate top. The index is witnessing selling pressure in the range of 10600-10650.
Monday marks the third consecutive day when Nifty rose above 10,600 on an intraday basis but failed to hold on to that level on a closing basis.
The Nifty 50 which opened at 10,607 rose to an intraday high of 10,645. The index witnessed selling pressure around 10,650 which pushed the index below 10,500 to hit an intraday low of 10,464. The index finally closed 103 points lower at 10,484.
India VIX move up sharply by 9.05 percent at 19.36 levels. The spurt in volatility after the decline of the last two weeks suggests bears are putting pressure at higher zones. VIX has to cool down below 16 zones to get the next leg of smooth upside rally in the market.
We have collated the top 15 data points to help you spot profitable trades:
Key support and resistance level for Nifty
The Nifty closed at 10,482.2 on Monday. According to Pivot charts, the key support level is placed at 10,415.63, followed by 10,349.07. If the index starts moving upwards, key resistance levels to watch out are 10,597.13 and then 10,712.07.
The Nifty Bank index closed at 25,539.8 on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 25,387.53, followed by 25,235.27. On the upside, key resistance levels are placed at 25,799.63, followed by 26,059.46.
Call Options Data
Maximum Call open interest (OI) of 34.15 lakh contracts was seen at the 11,000 strike price. This will act as a crucial resistance level for the November series.
This was followed by the 10,700 strike price, which now holds 31.09 lakh contracts in open interest, and 10,800, which has accumulated 29.87 lakh contracts in open interest.
Maximum call writing was seen at the strike price of 10,700, which added 5.05 lakh contracts, followed by 11,000 which added 4.26 lakh contracts, and 10,600, which added 3.17 lakh contracts.
There was hardly any Call unwinding seen.