Middle East Tensions Drive Oil Prices Higher Ahead of Market Open

Market Update: Nifty 50 and Bank Nifty Under Pressure

The Nifty 50 declined by 1.27% on March 6, wiping out its previous day's gains and increasing the total weekly loss to 2.9%. The index is under pressure due to intensified US-Israel-Iran war-driven West Asia tensions, which have lifted oil prices to nearly $95 a barrel.

Key Levels for the Nifty 50

• Resistance: 24,631, 24,699, and 24,807
• Support: 24,413, 24,346, and 24,237
• Previous week's low: 24,300

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The index has formed a long bearish candle on the daily charts, indicating a weakening trend amid mild volatility. The moving averages have trended downward, while the MACD and signal line's bearish gap widened with an expansion of the red histogram. The RSI slipped to 33.45, while the Stochastic RSI maintained a positive crossover in the oversold zone.

Key Levels for the Bank Nifty

• Resistance: 58,520, 58,782, and 59,206
• Support: 57,671, 57,409, and 56,985
• Fibonacci retracement: 58,656, 59,250
• 50% Fibonacci retracement level: 57,300

The Bank Nifty has also formed a long red candle on the daily timeframe and fell decisively below the 100-day EMA, indicating bears are tightening their grip. The RSI dropped to 31.91, while the MACD remained below the reference line and zero line with a widening red histogram bar.

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

Nifty Call Options Data

• Maximum Call open interest: 25,000 strike (1 crore contracts)
• Maximum Call writing: 25,000 strike (33.11 lakh contracts)
• Maximum Call unwinding: 24,150 strike (12,350 contracts)

Nifty Put Options Data

• Maximum Put open interest: 24,000 strike (64.25 lakh contracts)
• Maximum Put writing: 24,450 strike (7.36 lakh contracts)
• Maximum Put unwinding: 24,600 strike (15.06 lakh contracts)

Bank Nifty Call Options Data

• Maximum Call open interest: 59,000 strike (10.03 lakh contracts)
• Maximum Call writing: 59,000 strike (2.7 lakh contracts)
• Maximum Call unwinding: 59,300 strike (21,390 contracts)

Bank Nifty Put Options Data

• Maximum Put open interest: 59,000 strike (8.6 lakh contracts)
• Maximum Put writing: 59,000 strike (2.64 lakh contracts)
• Maximum Put unwinding: 59,100 strike (3,240 contracts)