Trade Setup for March 27: 15 Key Factors to Watch Amid US-Iran Diplomatic Tensions and Oil Market Volatility

Nifty 50 and Bank Nifty Market Analysis

March 25, 2024

The Nifty 50 extended its relief rally, rising 1.7% amid hopes of a resolution to the West Asia conflict following ongoing peace talks between the United States and Iran. However, uncertainty around a ceasefire persists, keeping oil prices volatile, while the VIX remains elevated.

Key Levels for the Nifty 50

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

• Resistance based on pivot points: 23,432, 23,527, and 23,680
• Support based on pivot points: 23,125, 23,030, and 22,876
• The index is still well below the 20-, 50-, 100-, and 200-day EMAs, indicating a lack of strong conviction in the recovery.

Special Formation

The Nifty 50 formed a bullish candle with a minor upper shadow on the daily charts, indicating a continuation of the upward move from the recent swing low for another session. However, the RSI at 40.12 maintained a bullish crossover, while the MACD inclined upward but remained below the reference and zero lines. The histogram's weakness continued to fade.

Immediate Support and Resistance

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

• Immediate support: 23,000-22,900
• Immediate resistance: 23,500-23,600

Nifty Call Options Data

• Maximum Call open interest: 24,000 strike (77.03 lakh contracts)
• Maximum Call writing: 24,000 strike (12.64 lakh contracts)
• Maximum Call unwinding: 23,000 strike (16.09 lakh contracts)

Nifty Put Options Data

• Maximum Put open interest: 23,000 strike (71.91 lakh contracts)
• Maximum Put writing: 23,300 strike (22.71 lakh contracts)
• Maximum Put unwinding: 23,800 strike (1.83 lakh contracts)

Key Levels for the Bank Nifty

• Resistance based on pivot points: 54,055, 54,319, and 54,748
• Support based on pivot points: 53,198, 52,933, and 52,505
• Resistance based on Fibonacci retracement: 55,316, 56,544
• Support based on Fibonacci retracement: 53,067, 50,705

Special Formation

The Bank Nifty also behaved similarly to the Nifty 50 after a gap-up opening, surpassing the 10-day EMA intraday but failing to close above it. The index remained below all key moving averages but continued its higher high–higher low formation for another session on a daily basis.

Immediate Support and Resistance

• Immediate support: 52,500
• Immediate resistance: 54,000-54,500

Bank Nifty Call Options Data

• Maximum Call open interest: 55,000 strike (7.01 lakh contracts)
• Maximum Call writing: 53,700 strike (68,910 contracts)
• Maximum Call unwinding: 53,000 strike (1.17 lakh contracts)

Bank Nifty Put Options Data

• Maximum Put open interest: 52,500 strike (with specific number of contracts)
• Maximum Put writing: 23,300 strike (22.71 lakh contracts)
• Maximum Put unwinding: 23,800 strike (1.83 lakh contracts)