Market Prediction & Pre Market Analysis, Key Levels for Nifty 50, Option Chain Analysis, PCR, Technical Indicators, Straddle Price.
Pre Market Analysis & Market Prediction for tomorrow suggests the fact that the index is going to undergo a huge transformation in the coming days. If the OI starts changing even before the prices do, it indicates volatility is building up. This could create an opportunity for a breakout or a breakdown that could change trading strategies.
In this blog, we will look at key levels for Nifty50, critical support and resistance levels, option chain analysis, and few technical indicators like RSI and EMA, Nifty50 weightage stocks analysis to provide Nifty50 Pre Market Analysis and Market Prediction.
Global Cues
US Markets: Shares on Wall Street added a little bit contribution overnight with the DJI index +0.02% NDQ +0.22% S&P 500 closed +0.11%. There could be a neutral backdrop for Indian equities due this sentiment.
Asian Markets: Asian markets have showed a neutral sentiment with indices like Nikkei +0.55% and Hang Seng -0.50% remaining mixed and balanced in their moves.
Key Levels for Nifty 50
Support Level
- Primary Support: 24300
- Critical Support: 24500
Resistance Level
- Immediate Resistance: 24750
- Major Hurdle: 25000
Earlier Nifty50 index closed at 24,610 -8.95 (-0.04%) with critical support at 24500 level and primary support at 24300 level. On the upside immediate resistance is at 24750 level and major hurdle is at 25000 level. Breaking above 24750 could trigger a bullish breakout. 24850 followed by 25000 level will act as next resistance for Nifty50.
On the downside 24500 level followed by 24300 may act as critical support upcoming trading session. Breakdown below 24300 could trigger a bearish sentiment and the next major support will be 24000 & 23870.
Option Chain Analysis
Call Side OI
| Strike Price | Change in OI | OI |
|---|---|---|
| 24500 | 51,031 | 1,77,903 |
| 24600 | 1,12,920 | 2,95,014 |
| 24700 | 60,960 | 4,50,294 |
| 24800 | 55,832 | 3,20,271 |
| 24900 | 11,329 | 1,92,789 |
Maximum Call OI was seen at 25000 level followed by 24800 and 25200. Maximum call writing was seen at 24600 and 24700 followed by 24800 Strike price. For Thursday session according to option chain immediate resistance will be 24700 level and major hurdle will be 25000.
Put Side OI
| Strike Price | Change in OI | OI |
|---|---|---|
| 24500 | -884 | 2,45,782 |
| 24400 | 17,968 | 1,68,855 |
| 24300 | 86,065 | 2,71,456 |
| 24200 | 2,510 | 1,88,479 |
| 24100 | 19,821 | 1,18,993 |
| 24000 | 34,767 | 3,77,206 |
Maximum Put OI was seen at 24000 followed by 24300 and 24500 Strike Price. Maximum Put writing as seen at 24300 and 24000 followed by 23800 Strike Price.
Option chain data indicates that 24700 followed by 25000 level will be the next hurdle for nifty 50 for upcoming session. As earlier it was predicted by us that after breakout of 24600 the next resistance will be 24800, which was achieved in earlier session. On Breakout of 24700 level next resistance will be 25000. Put side OI data indicates that 24500 level will be the critical support for current expiry with 2,45,782 OI. On Breakdown of 24500 level 24300 will act as next support followed by 24000 as primary support.
- Calls at 24700-25000 shows heavy resistance, indicating it as a key hurdle for current expiry.
- Strong put OI at 24500 confirms it as a crucial support level for current expiry.
Technical Indicators
Relative Strength Index(RSI):
- Current Value: 57.6 on 1D timeframe.
- An RSI above 60 could indicate a bullish breakout, while a dip below 50 might signal bearish sentiment.
Exponential Moving Average (EMA):
| EMA | Level |
|---|---|
| 10 EMA | 24440 |
| 20 EMA | 24310 |
| 50 EMA | 24415 |
| 100 EMA | 24345 |
| 200 EMA | 23640 |
Market Prediction for Tomorrow & Market Sentiment
Market Sentiment:
- Market is likely to be rangebound between 24750-24500 level. For a scalp trade long above 24680 with SL of 20 points and target of 24750 is suggested.
Market Prediction:
- Bullish: Go long above 24750 with a target near 24850.
- Bearish: Short below 24500 with a target of 24300.
Straddle Price
- Straddle price is 228.30 which indicates that market can be highly volatile in upcoming session. Use VWAP in straddle charts for extra confirmation.
Nifty 50 Weightage Stocks
Reliance
- Critical Support: 1270
- Primary Support: 1215
- Immediate Resistance: 1300
- Major Hurdle: 1330
HDFC Bank
- Critical Support: 1835
- Primary Support: 1780
- Immediate Resistance: 1880
- Major Hurdle: 1880
Infosys
- Critical Support: 1855
- Primary Support: 1795
- Immediate Resistance: 1980
- Major Hurdle: 2000
PCR
- Nifty 50 PCR is 0.7, which indicates bearish sentiment is rising up in the market.
Pre Market Analysis & Verdict
Present value of straddle is at 228.3 whereas INDIA VIX is at 13.77 which remains elevated as compared to VIX. Also the Nifty 50 Put-Call Ratio (PCR) shows us a figure of 0.7 which is indicates a bearish sentiment prevailing in the market.
It is advisable to consider going Long only above 24850 with bullish confirmation.
Because of low PCR as well as bearish signal, a short position can be initiated if Nifty 50 goes down the 24500 level with a target at around 24300.
Traders can use these observations, combined with technical indicators and expert analysis, to guide their strategies in this environment. Disclaimers: Trade responsibly and risk management should always be implemented before entering any trade.
“Share your predictions for today’s market in the comments below!”