Middle East Developments Remain in Focus Ahead of March 30 Market Open

Nifty 50 and Bank Nifty Review (March 27)

Market Performance

The Nifty 50 index experienced a loss of over 2% on March 27, reversing a two-day relief rally. This decline was influenced by pressure from global peers amid escalating tensions in the Middle East, which led to a decline in the rupee to an all-time low and prompted Foreign Institutional Investors (FIIs) to press the sell button.

Technical Analysis

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• The Nifty 50 formed a long bearish candle on the daily charts, with moving averages maintaining a downward slope and the 100-day EMA falling below the 200-day EMA for the first time since April 2025, indicating strong bearish control.
• The index approached the 78.6% Fibonacci retracement level (of the rally from April 2025 to the January 2026 high).
• The MACD remained below the signal and zero lines, though weakness in the histogram eased further, while the RSI failed to sustain above 40 and reversed downward to close at 35.76, though it remained above the signal line.

Key Levels

• Nifty 50: Resistance based on pivot points - 23,082, 23,173, and 23,318; Support based on pivot points - 22,791, 22,701, and 22,555.
• Bank Nifty: Resistance based on pivot points - 53,006, 53,261, and 53,674; Support based on pivot points - 52,180, 51,925, and 51,511.

Options Data

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• Nifty Call Options:

• Maximum Call open interest at the 23,000 strike (with 83.37 lakh contracts).
• Maximum Call writing at the 23,000 strike, which saw an addition of 53.01 lakh contracts.

• Nifty Put Options:

• Maximum Put open interest at the 22,000 strike (with 93.95 lakh contracts), which can act as a key support level for the Nifty in the short term.
• Maximum Put writing placed at the 22,000 strike, which saw an addition of 14.63 lakh contracts.

• Bank Nifty Call Options:

• Maximum Call open interest at the 54,000 strike (with 6.9 lakh contracts).
• Maximum Call writing observed at the 53,000 strike (with the addition of 3.34 lakh contracts).

• Bank Nifty Put Options:

• Maximum Put open interest at the 51,000 strike (with 5.92 lakh contracts), which can act as a key support level for the index.
• Maximum Put writing placed at the 52,400 strike (not specified).