The Nifty 50 slipped by a third of a percent on Aug 19, taking its total correction to over 2% in the last seven straight sessions. Momentum indicators and oscillators signalled increasing bearish control. A break below Wednesday’s low of 24,026 could open the door for a decline toward 23,850 and then 23,600.
If the index bounces back, 24,200 is expected to act as an immediate resistance level, but doubts remain about the sustainability of the rebound. A sustained move above 24,200 is required for a further up‑move; until then, consolidation may continue, experts said.
Pivot‑point resistance for the Nifty is 24,148, 24,183 and 24,239. Pivot‑point support lies at 24,036, 24,001 and 23,945. The index formed a bearish candle with minor upper and lower shadows on the daily charts, indicating weakness amid minor volatility.
The Nifty traded below all key moving averages, with short‑term averages trending downward. The RSI declined to 42.22, while the MACD fell toward the zero line and its bearish histogram bar expanded for the fifth straight session.
For the Bank Nifty, pivot‑point resistance levels are 57,335, 57,419 and 57,555, while support levels are 57,064, 56,980 and 56,844. Fibonacci resistance is 57,367 and 57,685; Fibonacci support is 57,135 and 56,870.
The Bank Nifty formed a Doji‑like candlestick pattern on the daily timeframe, signalling indecision. The recovery in the second half helped the banking index move back above the 50‑day EMA, keeping it above medium‑ and long‑term averages. However, it continued to trade below short‑term averages, indicating near‑term caution.
The Bank Nifty’s RSI fell to 47.1 amid a consistent negative crossover, while the MACD drifted lower toward the zero line and the red histogram bar expanded for the fifth straight session.
Monthly options data for the Nifty show the maximum Call open interest at the 24,500 strike with 1.48 crore contracts. This level can act as a key resistance. The 24,300 strike had 1.16 crore contracts and the 24,200 strike had 1.1 crore contracts.
Maximum Call writing was observed at the 24,100 strike, adding 79.32 lakh contracts, followed by the 24,200 and 24,300 strikes adding 41.58 lakh and 36.42 lakh contracts respectively. Little Call unwinding was seen in the 23,650‑24,600 strike band.
On the Put side, the 24,000 strike holds the maximum Put open interest with 1.36 crore contracts, acting as key support. The 23,700 strike had 81.98 lakh contracts and the 24,100 strike had 68.43 lakh contracts.
Maximum Put writing was at the 24,100 strike with 31.92 lakh contracts, followed by the 24,000 and 24,050 strikes adding 22.58 lakh and 21.95 lakh contracts. The maximum Put unwinding was at the 24,300 strike, shedding 8.02 lakh contracts.
For the Bank Nifty, the maximum Call open interest was at the 58,000 strike with 24.56 lakh contracts, a key resistance level. The 57,500 strike had 11.1 lakh contracts and the 57,000 strike had 7.75 lakh contracts.
Maximum Call writing for the Bank Nifty was at the 57,200 strike with 1.57 lakh contracts, followed by the 57,000 and 57,900 strikes. The maximum Call unwinding occurred at the 57,700 strike, shedding 20,460 contracts.
On the Put side, the 57,000 strike holds the maximum Put open interest with 11.54 lakh contracts, acting as support. The 58,000 strike had 10.38 lakh contracts and the 56,500 strike had 6.26 lakh contracts.
Maximum Put writing was at the 57,000 strike with 1.626 lakh contracts, followed by the 57,100 and 56,600 strikes. The maximum Put unwinding was at the 58,000 strike, shedding 1.43 lakh contracts.
The Nifty Put‑Call ratio (PCR) fell to 0.81 on Aug 19, down from 0.93 the previous session. A PCR above 0.7 generally indicates bullish sentiment, while a ratio below 0.7 points to bearish mood.
The India VIX, a fear gauge, remained below its short‑term moving averages and stayed under the 12 zone for several sessions. It fell 0.57% on Wednesday to 11.32, indicating subdued near‑term volatility expectations.
Open‑interest data shows a long build‑up in 38 stocks, a decline in 39 stocks, a short build‑up in 116 stocks, and short‑covering in 19 stocks.
High delivery trades indicate investing interest. Stocks banned under the F&O segment include Bandhan Bank, Manappuram Finance and SAIL. Life Insurance Corporation of India was removed from the F&O ban.