Markets to Watch: 15 Key Developments for May 14 Trading
Market Update: Nifty 50 Consolidates After Sharp Correction
The Nifty 50 index witnessed consolidation after a sharp correction over the previous three sessions and closed one-tenth of a percent higher on May 13. Despite this, caution persisted due to the continued depreciation of the rupee to a fresh low, oil prices holding above $100 a barrel, persistent FII selling, and elevated VIX levels.
Technical Indicators Favor Bears
Technical indicators remained favourable for bears, with the index needing to sustain above 23,400 — a crucial level as it represents the 50 percent Fibonacci retracement of the April rally — for a further upmove towards the 23,600-23,700 hurdle, followed by 24,000, which remains a key resistance level. Only above this mark may bulls regain strength. However, failure to hold above 23,400 could drag the index down towards 23,200-23,100 in the upcoming sessions, according to experts.
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Key Levels for the Nifty 50
| Resistance Levels | Support Levels |
|---|---|
| 23,542 | 23,297 |
| 23,617 | 23,221 |
| 23,740 | 23,099 |
The Nifty 50 formed a small-bodied bullish candle with a long upper shadow and a minor lower shadow on the daily timeframe, indicating pressure at higher levels along with some buying interest at lower levels. The index remained below all key moving averages, maintaining a lower high-lower low formation, while all the moving averages continued to slope downward. The RSI climbed slightly above 40 but remained below the signal line. The MACD slipped below the zero line and stayed below the signal line, with widening red histogram bars. All these indicators suggest continued bearish momentum.
Key Levels for the Bank Nifty
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| Resistance Levels (Pivot Points) | Support Levels (Pivot Points) |
|---|---|
| 53,932 | 53,237 |
| 54,147 | 53,023 |
| 54,494 | 52,675 |
| Resistance Levels (Fibonacci Retracement) | Support Levels (Fibonacci Retracement) |
|---|---|
| 54,422 | 52,798 |
| 55,809 | 51,532 |
The Bank Nifty declined 99 points and formed a small-bodied bearish candle with a long upper shadow and a minor lower wick, indicating pressure at higher levels despite limited buying support at lower levels. All key moving averages continued to trend downward, along with a consistent lower high-lower low structure. The RSI remained below 40 at 38.99, while the MACD stayed below both the reference and zero lines, with the red histogram bars expanding further. All these indicators point to continued weakness in the banking index.
Nifty Call Options Data
| Strike Price | Maximum Call Open Interest | Maximum Call Writing |
|---|---|---|
| 24,000 | 64.06 lakh | 23,900 |
| 23,500 | 51.44 lakh | 23,500 |
| 23,900 | 44.63 lakh | 23,900 |
Nifty Put Options Data
| Strike Price | Maximum Put Open Interest | Maximum Put Writing |
|---|---|---|
| 23,000 | 55.6 lakh | 23,400 |
| 23,500 | 43.14 lakh | 23,500 |
| 23,400 | 42.4 lakh | 23,400 |
Bank Nifty Call Options Data
| Strike Price | Maximum Call Open Interest | Maximum Call Writing |
|---|---|---|
| 55,000 | 6.93 lakh | 54,000 |
| 54,000 | 5.6 lakh | 54,000 |
| 54,500 | 3.24 lakh | 54,000 |
Bank Nifty Put Options Data
| Strike Price | Maximum Put Open Interest | Maximum Put Writing |
|---|---|---|
| 54,000 | 6.51 lakh | 54,000 |
| 53,000 | 5.64 lakh | 53,600 |
| 55,000 | 4.74 lakh | 54,600 |
Funds Flow (Rs crore)
- [Not Provided]
Put-Call Ratio
The Nifty Put-Call ratio (PCR) was unchanged at 0.93 on May 13, compared to previous session. The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market.
India VIX
India VIX rose 0.75 percent to 19.43 and extended its upward journey for the fourth straight session, indicating rising discomfort among bulls. The VIX needs to fall and sustain below the 17 zone for bulls to regain confidence.
F&O Data
- Long build-up was seen in 92 stocks.
- Long unwinding was seen in 25 stocks.
- Short build-up was seen in 51 stocks.
- Short-covering was seen in 44 stocks.
- Stocks added to F&O ban: Nil
- Stocks retained in F&O ban: SAIL
- Stocks removed from F&O ban: Nil
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