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Nifty Outlook

The index on Friday’s session formed a bullish candlestick pattern which remained contained inside previous session price range signaling consolidation with positive bias . Nifty has already retraced more than 50 % of its entire previous decline from 26 ,373 to 22 ,183.

Going ahead bias remain positive a follow through strength and close above last week high of 24 ,400 will trigger further momentum, potentially leading the index towards 52 weeks EMA and 61.8% retracement of the entire decline placed around 24 ,700 –24 ,800 range .

Failure to move above last week high will lead to some consolidation in the range of 23 ,500 - 24 ,400 as after the recent strong up move of more than 2200 points in just 10 trading sessions the daily stochastic are approaching overbought territory .

Short -term support is positioned around 23 ,600 –23 ,500 range being the confluence of last week low and 20 days EMA. Holding above this support band would help sustain the last two weeks pullback trend .

* Call writers have unwound positions between 24,200 –24,400, with minor trimming at 24,500, indicating easing resistance and potential upside

* Strong put writing is observed from 24,000 to 24,400, establishing a broad support base

* The combination of call unwinding and put writing reflects improving bullish sentiment

* Limited call writing is seen at 24,600, which may act as immediate resistance; a breakout above this level can open upside towards 25,000

* A decisive breach below 24,200 may weaken sentiment and lead to a consolidation phase

* Bias remains positive; dips towards support zones should be considered as buying opportunities

Bank Nifty Outlook

The index on Friday’s session formed a bullish candlestick pattern which remained contained inside previous session price range signaling consolidation with positive bias . As mentioned in earlier edition Bank Nifty has already retraced more than 50 % of its prior decline from 61,764 to 49 ,955 and is seen consolidating around the 200 days EMA.

Going ahead, bias remain positive a follow through strength and close above last week high of 56 ,834 will open further upside towards 57,800 levels in the coming sessions being the previous breakdown area and key retracement of previous decline .

Failure to move above last week high will lead to some consolidation in the range of 54 ,000 - 56 ,800 range as after the recent strong up move of around 7000 points in just 10 trading sessions the daily stochastic are approaching overbought territory .

From a short -term perspective, support is placed in the range of 54 ,500 –54 ,000 zone, being the confluence of the last week low and the 20 - day EMA. Sustaining above this support band will keep the current pullback trend intact .

* Strong put writing is observed between 56,000 –56,500, with maximum addition at 56,500, indicating a firm support base

* Call writers have unwound positions across 56,700 –58,500, reducing overhead resistance

* The reduction in call writing suggests short covering rather than fresh bearish bets

* Dominance of put writers, along with call unwinding, indicates a shift in the base towards higher levels

* However, upside may remain event - driven, especially post banking earnings

* Overall bias remains positive; any dip towards support levels should be utilized as a buying opportunity

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