Global Markets Bracing for Volatility as Oil Prices Soar Amid Tensions Over Hormuz Strait Blockade

Market Update: Nifty 50 Rebounds, But Faces Pressure Ahead of Fed Meeting

The Nifty 50 index rebounded with an eight-tenths of a percent gain on April 29, despite facing pressure at higher levels. However, the index needs more supportive factors to extend the rally in the upcoming sessions. Momentum indicators are not fully supportive, and the index has failed to hold above the 50-day EMA in the last five sessions.

Oil Prices Spike, Caution Ahead of Fed Meeting

Meanwhile, oil prices spiked above $110 a barrel as Trump remained firm on the Hormuz blockade until Iran agrees to a nuclear deal. Caution also prevailed ahead of the Fed meeting outcome tonight. The index needs to scale and sustain above 24,350 for a rally towards 24,500–24,600. Until then, consolidation may continue, with immediate support at 24,000–23,950; a fall below this zone could open the door for 23,800, according to experts.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Key Levels for Nifty 50 and Bank Nifty

The Nifty 50 formed a bullish candle with an upper shadow on the daily charts, indicating a positive move despite pressure at higher levels. The index closed above the 10- and 20-day EMAs, as well as above the 23.6 percent Fibonacci retracement (of the rally from the April low), but could not hold above the 50-day EMA or the 50 percent Fibonacci retracement (of the fall from the February high to the April low) during Wednesday’s rally. The RSI climbed to 53.19 but remained below the signal line. The MACD stayed above the reference and zero lines, but the histogram’s green bars have shrunk for eight consecutive sessions.

Nifty Call Options Data

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

• Maximum Call open interest at 25,000 strike (67.44 lakh contracts)
• Maximum Call writing at 24,300 strike (30.37 lakh contracts)
• Maximum Call unwinding at 24,000 strike (16.2 lakh contracts)

Nifty Put Options Data

• Maximum Put open interest at 24,000 strike (51.03 lakh contracts)
• Maximum Put writing at 24,200 strike (24.13 lakh contracts)
• Maximum Put unwinding at 23,600 strike (5.32 lakh contracts)

Bank Nifty Call Options Data

• Maximum Call open interest at 56,000 strike (7.95 lakh contracts)
• Maximum Call writing at 56,200 strike (81,120 contracts)
• Maximum Call unwinding not seen in the 54,250-57,000 strike band

Bank Nifty Put Options Data

• Maximum Put open interest at 56,000 strike (8.32 lakh contracts)
• Maximum Put writing at 55,600 strike (70,050 contracts)
• Maximum Put unwinding at 55,800 strike (27,240 contracts)

Funds Flow and Put-Call Ratio

• Nifty Put-Call ratio (PCR) rose to 1.04 on April 29
• India VIX declined further to 17.44, down 3.38 percent on Wednesday

Funds Flow and Put-Call Ratio Table

Long Build-up and Short Build-up

• Long build-up seen in 67 stocks
• Long unwinding seen in 32 stocks
• Short build-up seen in 76 stocks
• Short-covering seen in 39 stocks

High Delivery Trades and Stocks Under F&O Ban

• Stocks added to F&O ban: Nil
• Stocks retained in F&O ban: Nil
• Stocks removed from F&O ban: SAIL