Trade Setup for March 13: Key Market Developments Ahead of the Opening Bell Amid Rising Oil Prices and Strait of Hormuz Tensions

Market Update: Nifty 50 and Bank Nifty Hit Fresh Lows

The Nifty 50 index hit a fresh 11-month low, falling nearly 1% as Middle East tensions escalated, driving oil prices to $100 a barrel. Technical indicators maintained a sell signal, with the bears exerting control over the market.

Key Levels:

• Nifty 50: Resistance based on pivot points: 23,782, 23,847, and 23,953; Support based on pivot points: 23,570, 23,505, and 23,399.
• Bank Nifty: Resistance based on pivot points: 55,501, 55,708, and 56,042; Support based on pivot points: 54,831, 54,625, and 54,290.

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Technical Analysis:

• The Nifty 50 formed a small-bodied bearish candle with a long upper shadow and a minor lower shadow on the daily timeframe, along with a lower high–lower low formation.
• Moving averages maintained a downward move, with the 50-day EMA inching closer to the 200-day EMA, raising the possibility of a Death Cross formation.
• The RSI declined to 28.02, while the MACD dropped to the lowest level since April 2020, with further expansion in the red histogram bar.

Options Data:

• Nifty Call Options: The 24,300 strike holds the maximum Call open interest, which can act as a key resistance level for the Nifty in the short term.
• Nifty Put Options: The 23,000 strike holds the maximum Put open interest, which can act as a key support level for the Nifty in the short term.
• Bank Nifty Call Options: The 56,000 strike holds the maximum Call open interest, which can act as a key resistance level for the index in the short term.
• Bank Nifty Put Options: The 55,000 strike holds the maximum Put open interest, which can act as a key support level for the index.

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

Immediate Support and Resistance:

• The Nifty 50 is likely to face immediate resistance at 23,700–23,800 and support at 23,500.
• The Bank Nifty is likely to face immediate resistance at 55,501–55,708 and support at 54,831.