By Ravi Singh
Nifty started the week mute with no change in OI data on Monday, suggesting a period of consolidation following a 2.5% gain in the previous week. The November CPI data, scheduled for release this Thursday, will be a key economic indicator. For the continuation of last week’s momentum, the Nifty needs to firmly close above 24,850. In the derivatives market, the Nifty November weekly options exhibit significant open interest at 25000 CE and 24000 PE strikes. In particular, the 25,000 CE has an open interest of about 10.6 million contracts, whereas the 24,000 PE shows roughly 8.5 million contracts. From a liquidity standpoint, FII have been net buyers of Rs 9,956 crore in the cash segment which could be indicating a trend reversal.
The Bank Nifty opened flat following a nearly 3% gain in the previous week. A key resistance is observed at the 54000 level. A decisive close above this threshold could potentially pave the way for the Bank Nifty to surpass its lifetime high. For the monthly expiry, the maximum open interest is concentrated at 54,000 CE (with 2 million contracts) and 52,000 PE (more than 1.8 million contracts).
Key levels to watch:
The index is expected to maintain its positive trajectory as long as it holds above 24400. Traders can consider adopting a ‘buy on dip’ strategy for the near term. We expect a significant hurdle in the 24,300-25000 zone, while immediate support is likely around the 24,400–24300 levels. Consequently, the trading range for Nifty during the December series is expected to be between 24,000 and 25,000.
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For Bank nifty immediate support is likely around the 52800-52000 mark while 54000-54200 would act like an immediate hurdle for further upside. We anticipate the index to trade in a broader range of 52,200-54,200 range during the December series.
(Disclaimer: Dr. Ravi Singh is the SVP- Retail Research, Religare Broking Ltd. Views, recommendations, opinions expressed are personal and do not reflect the official position or policy of Financial Express Online. Readers are advised to consult qualified financial advisors before making any investment decisions.
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