Trade setup for March 19: Nifty poised for upward move toward resistance

After strong gains in the last two sessions, the Nifty 50 index may experience some consolidation. Experts suggest that a key support level is at 22,720, and as long as this level holds, the market could continue its upward momentum toward 23,000-23,400 in the near future.

March 18 Performance Recap

The Nifty 50 had an impressive performance on March 18, closing 1.5% higher and bridging the bearish gap from February 24. The index surged above the midline of the Bollinger bands, signaling a positive short-term trend. However, after the strong uptrend, some consolidation is expected. If the support at 22,720 holds, an upward move toward 23,000-23,400 remains in the cards.

15 Key Market Data Points for March 19

Nifty 50 Key Levels

Resistance: 22,863, 22,924, 23,022

Support: 22,665, 22,604, 22,505

The Nifty 50 recently formed a bullish candlestick pattern on daily charts, signaling a potential continuation of the uptrend. The Relative Strength Index (RSI) is above 50, and the Moving Average Convergence Divergence (MACD) maintains a positive bias.

Bank Nifty Key Levels

Resistance: 49,409, 49,591, 49,886

Support: 48,820, 48,638, 48,344

The Bank Nifty also recorded a 2% gain, forming a green candle and showing positive movement above key moving averages.

Nifty Call Options Data

Maximum Call Open Interest: 23,000 strike (1.32 crore contracts)

Key Resistance Levels: 23,000, 23,200, 23,400

Significant Call writing is observed at the 23,000 strike, which is expected to be a key resistance in the short term.

Nifty Put Options Data

Maximum Put Open Interest: 22,500 strike (1.25 crore contracts)

Key Support Levels: 22,500, 22,000, 22,600

The 22,500 strike holds the maximum Put open interest, making it a crucial support level for Nifty.

Bank Nifty Call Options Data

Maximum Call Open Interest: 49,000 strike (14.56 lakh contracts)

Key Resistance Levels: 49,000, 50,000, 51,000

The 49,000 strike is a key level for the Bank Nifty in the short term, with significant Call writing at the 49,200 strike.

Bank Nifty Put Options Data

Maximum Put Open Interest: 49,000 strike (19.79 lakh contracts)

Key Support Levels: 49,000, 48,500, 48,000

The 49,000 strike holds the maximum Put open interest, making it a strong support level for Bank Nifty.

Funds Flow

Market funds flow data can provide insights into institutional and retail investor behavior, though specifics are not available in this report.

Put-Call Ratio (PCR)

The PCR for Nifty jumped to 1.29, indicating a bullish sentiment in the market as traders are more inclined to sell Put options than Call options.

India VIX (Volatility Index)

The India VIX dropped 1.53% to 13.21, suggesting a lower level of market volatility and further supporting a bullish outlook.

Long Build-up

A long build-up was observed in 108 stocks, suggesting that investors are taking long positions in these stocks.

Long Unwinding

Two stocks experienced a decline in open interest (OI) and price, indicating long unwinding.

Short Build-up

Nine stocks saw an increase in OI and a drop in price, indicating a build-up of short positions.

Short-Covering

A total of 102 stocks experienced short-covering, meaning a decrease in OI and an increase in price.

High Delivery Trades

Stocks with high delivery volumes indicate more investment interest than speculative trading.

Stocks Under F&O Ban

Stocks under the F&O ban include those where derivative contracts exceed 95% of the market-wide position limit. Currently, stocks like BSE, IndusInd Bank, Hindustan Copper, Manappuram Finance, and SAIL are under the ban.

Conclusion

The market has shown strong momentum recently, but some consolidation is expected in the short term. As long as key support levels hold, particularly at 22,720 for the Nifty and 49,000 for the Bank Nifty, the market could continue its upward journey toward the next resistance levels.

Disclaimer: Always consult with certified experts before making investment decisions.