As per the weekly options data, the Nifty may face hurdles

As per the weekly options data, the Nifty may face hurdles at the 22,500-22,700 zone, with support placed at the 22,000 levels.

Nifty Trend

The Nifty 50 extended its downward move for another session amid rangebound trading, falling by a third of a percent on March 13, tracking the nervousness in Asian peers. The index again could not sustain above the 5-day (22,442) and 10-day EMA (22,470) on a closing basis and remained within the previous day’s range throughout the session. Overall, it has been facing resistance in the range of 22,600-22,700 zone and support at 22,300-22,250. Until the index provides a strong closing on either side of the range, non-directional activity may continue in the upcoming sessions, experts said. The 20-day EMA is at 22,610.

The Nifty 50 opened higher and climbed up to 22,558 but could not sustain those gains for long. The index erased all gains in late morning trades and remained weak for the rest of the session, closing 73 points down at 22,397. It formed a bearish candlestick pattern on the daily charts, while the bear candle with upper and lower shadows on the weekly timeframe reflected a 0.7 percent decline for the week.

According to Amol Athawale, VP-Technical Research at Kotak Securities, the market is exhibiting non-directional activity. On the lower side, it is consistently finding support near 22,300, while profit booking has been witnessed between 22,600 and 22,650.

He believes that the current market texture is non-directional, and traders may be awaiting a breakout in either direction. “For the bulls, the key breakout zone is at 22,650. A failure to break out above 22,650 could push the market toward 22,800-22,900. Conversely, if the market falls below 22,300, selling pressure is likely to accelerate. Below this level, the market could retest levels of 22,100-22,000,” Amol said.

As per the weekly options data, the Nifty may face hurdles at the 22,500-22,700 zone, with support placed at the 22,000 levels.

The maximum Call open interest was observed at the 23,000 strike, followed by the 22,500 and 22,700 strikes, with the maximum Call writing at the 22,700 strike, followed by the 23,000 and 22,500 strikes. On the Put side, the 22,000 strike holds the maximum open interest, followed by the 21,500 and 22,400 strikes, with the maximum writing at the similar strikes.

The market will remain shut on March 14 for Holi.

Bank Nifty

The Bank Nifty closed flat with a positive bias amid rangebound trading but failed to hold the 10-day EMA on a closing basis. It was up by 3.8 points at 48,060 on Thursday, but it was down 0.9 percent for the week and formed a bearish candlestick pattern with upper and lower shadows, resembling a high-wave kind of pattern on the daily and weekly scale (though not a classical one). Furthermore, it continued the lower highs-lower lows formation for the fifth consecutive week, signaling that the bears are still in control.

“For short covering to accelerate, the index must break and sustain above 48,300, which could drive a rally toward 48,800. On the downside, dips toward 47,844 will offer buying opportunities as long as this support holds,” said Anshul Jain, Head of Research at Lakshmishree Investments.

Traders should watch for a decisive move above 48,300 for bullish confirmation, while maintaining caution if the index struggles to hold key support, he advised.

Meanwhile, the India VIX hit a fresh two-and-a-half-month low on Thursday, down by 3.01 percent to the 13.28 zone (the lowest closing level since December 27, 2024), extending the downtrend for another session, which gives comfort to the bulls. For the week, it fell by 1.4 percent.

Disclaimer: Moneywealth research provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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