The Nifty 50 finished the session 11 points higher on Aug 6, yet it stayed within a narrow trading range for the third straight day. The index traded well above all key moving averages, signalling a bullish bias even as momentum indicators show sideways action.
The market structure remains favourable for bulls. The index sits above the 20‑day and 50‑day EMAs, both of which are trending upward, indicating that a longer‑term uptrend is intact.
In the short term, traders are eyeing the 24,700‑24,800 zone as a resistance cap and the 24,500‑24,400 zone as support. These levels will be tested as market participants watch shipping activity normalise through the Strait of Hormuz.
A daily Doji candlestick pattern has appeared on the Nifty chart, signalling indecision between buyers and sellers. However, the overall technical picture still favours a pause in momentum within an ongoing uptrend.
Bank Nifty gained 0.56 % on the day, forming a bullish pattern after a two‑session correction. It remains above all key moving averages, with the 20‑day EMA providing support. The RSI sits at 56.31, and the MACD shows an upward trend with a bullish crossover.
Weekly options data shows the 25,000 strike as the highest call open interest with 88.17 lakh contracts, acting as a short‑term resistance. The 24,700 strike has 83.31 lakh contracts and is the level of maximum call writing, adding 9.23 lakh contracts. On the put side, the 24,600 strike leads with 85.43 lakh contracts, forming a key support level.
Monthly options data highlights the 58,000 strike with 23.32 lakh call contracts, a short‑term level of interest. Call writing is strongest at the 58,100 strike (93,840 contracts). For puts, the 58,000 strike again tops the list with 17.67 lakh contracts, and the maximum put writing occurs at the same strike.
The Nifty Put‑Call Ratio climbed to 1.04 on Aug 6, up from 0.91 the previous day. A ratio above 1 indicates that traders are selling more puts than calls, a sign of bullish sentiment.
India VIX closed at 12.16, staying below all key moving averages and the 14‑15 zone, which supports the bullish mood. The VIX rose 0.81 % from the prior session.
Open‑interest movements show 38 stocks with a long build‑up, 52 stocks with long unwinding, 74 stocks with short build‑up, and 48 stocks with short covering. High delivery shares in certain stocks suggest a growing investing interest.
With these levels and indicators in place, the Nifty 50 is likely to stay in a consolidation phase until it convincingly breaks out of the current range, either upward or downward.