Market Outlook: Key Developments to Watch as Oil Prices Rise Amid Tensions

Market Update - March 20

The Nifty 50 bounced back with a 0.5% gain on March 20, following a day of significant losses. The spike in oil prices due to intensified US-Iran tensions and rising inflation concerns led central banks to exercise caution. The weakening momentum and technical indicators kept bears in control.

Key Support and Resistance Levels

• Nifty 50:

• Immediate key support: 22,900
• Resistance zone: 23,200-23,400
• Key hurdle: 23,500

• Bank Nifty:

• Resistance zone: 54,117-54,787
• Support zone: 53,288-52,618
• Key resistance: 55,280
• Key support: 53,067

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

Technical Analysis

• Nifty 50:

• Formed a green candle with a long upper shadow, indicating pressure at higher levels
• Lower high-lower low formation remains intact
• RSI at 31.84, below the 40 zone
• MACD sustains below the reference and zero lines

• Bank Nifty:

• Closed flat with a negative bias, forming a bearish candle
• Moving averages maintained a downward slope
• Lower top-lower bottom structure remains intact
• RSI at 28.71, below the reference line
• MACD sustains below the zero and signal lines

Options Data

• Nifty Call Options:

• Maximum Call open interest: 23,800 strike (55.93 lakh contracts)
• Maximum Call writing: 23,800 strike (13.44 lakh contracts)

• Nifty Put Options:

• Maximum Put open interest: 23,000 strike (63.33 lakh contracts)
• Maximum Put writing: 23,100 strike (13.94 lakh contracts)

• Bank Nifty Call Options:

• Maximum Call open interest: 55,000 strike (7.21 lakh contracts)
• Maximum Call writing: 54,000 strike (83,670 contracts)

• Bank Nifty Put Options:

• Maximum Put open interest: 54,000 strike (6.72 lakh contracts)
• Maximum Put writing: 54,000 strike (69,430 contracts)

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