The BANK NIFTY has come to a standstill after an impressive eight-day rally, consolidating around the crucial 54,000 level as traders navigate a cautious landscape on the monthly expiry day.
The index ended Tuesday’s session slightly in the red, snapping its winning streak and reflecting a momentary pause in momentum. This consolidation phase comes at a critical juncture, with options data showing significant build-up in both call and put options at the 54,000 strike, indicating range-bound movement with the potential for sharp intraday swings.
Amidst the consolidation, BANK NIFTY’s broader trend remains bullish, though the index’s current range-bound activity around 54,000 suggests that traders are assessing the next potential move.
A significant level to watch is the 54,200 resistance on the 15-minute chart, with immediate support identified in the 53,650 to 53,750 region. Market participants are closely monitoring these levels for any breakout signals that could define the index’s next directional move.
Broader market sentiment remained cautious, reflecting in the NIFTY50, which extended its winning streak but failed to sustain its psychological 26,000 mark due to profit booking at higher levels.
The NIFTY50 index formed a doji candlestick pattern, a neutral formation that signals indecision among investors and highlights the market’s struggle to determine the next direction. This pattern is often seen as a pause in the ongoing trend and could foreshadow either a continuation or a reversal, depending on the subsequent price action.
On the global front, Asian markets presented a mixed bag early in the day, with the GIFT NIFTY down 0.2%, hinting at a flat to negative start for Indian equities.
Other major indices, such as Japan’s Nikkei 225 and Hong Kong’s Hang Seng, were trading in the green. Notably, Chinese and Hong Kong markets extended gains after China’s central bank announced fresh stimulus measures, including cuts in short-term interest rates and lower mortgage rates to boost confidence in the country’s housing market and broader economy.
In the U.S., markets ended on a positive note, with the Dow Jones, S&P 500, and Nasdaq Composite all closing in the green. Gains in technology stocks, particularly in chipmaker Nvidia, helped lift indices despite weaker-than-expected consumer confidence data. The Dow Jones and S&P 500 reached record highs, showcasing investor resilience even as concerns about economic growth linger.
Back in India, the trading landscape is marked by heightened caution due to today’s monthly expiry. BANK NIFTY’s open interest data signals a range-bound movement around 54,000 with low volumes, emphasizing the need for traders to brace for sharp swings.
As the market grapples with expiry-driven volatility, a breakout or breakdown in key levels could prompt significant directional moves, making today’s trading session a pivotal one for market participants.
FIIs also played a notable role in shaping market sentiment, turning net sellers after two consecutive days of buying. FIIs sold shares worth ₹3,868 crore, while DIIs turned net buyers, purchasing shares worth the same amount. The activity highlights the ongoing tug-of-war between FIIs and DIIs, contributing to the market’s indecisive tone.
In the F&O market, the trading patterns reflected similar sentiment. A long build-up was observed in stocks like Tata Steel, Tata Power, Hindalco Industries, Vedanta, and Power Grid, indicating increased open interest alongside rising prices.
Conversely, a short build-up was noted in Indian Energy Exchange, Page Industries, and IndiaMART InterMESH, where open interest rose despite falling prices. The F&O ban list also saw some adjustments, with stocks like Hindustan Copper and Indian Energy Exchange newly added, and others such as Aarti Industries and Biocon being removed.
In this period of consolidation and potential volatility, all eyes remain on key technical levels and institutional activity. The next decisive move for BANK NIFTY and NIFTY50 could set the tone for the coming weeks, as traders and investors weigh the impact of global cues, domestic factors, and the complex interplay of expiry-driven forces.
