Market move on September 22 The Nifty 50 ended the session 0.43% lower, erasing the gains made on the previous day and ending a four‑day winning streak. The index slipped below its critical resistance band of 23,500‑23,600, closing the day with a long red candle that resembles a bearish engulfing formation on the daily chart.
Technical backdrop - **Moving averages**: The index remains under short‑, medium‑ and long‑term moving averages, reinforcing a bearish bias. - **RSI**: Dropped to 34.88, still above the signal line but signalling oversold conditions. - **MACD**: The line edged higher yet stayed below its signal line; the histogram has contracted for five sessions in a row. - **Pivot points**: Immediate resistance levels are 23,446, 23,494 and 23,571; support is seen at 23,290, 23,242 and 23,165. - **Fibonacci**: The next resistance zone is near 23,800, while support clusters around 23,100‑23,000.
Options market insight Monthly options data reveal a concentration of activity around the 23,500 strike, which holds the largest call open interest (89.79 lakh contracts) and saw the biggest addition of new call contracts (33.37 lakh). On the put side, the 23,000 strike dominates with 95.16 lakh contracts, acting as a short‑term support floor.
- **Call writing**: Heavy at 23,500, 23,400 and 23,700 strikes. - **Put writing**: Concentrated at 23,400, 23,300 and 23,350 strikes. - **Put‑Call ratio (PCR)**: Fell to 0.94 from 1.20, indicating a shift toward more put buying relative to calls, a bearish signal.
Volatility and market breadth The India VIX continued its decline, closing at 10.99 – a 2% drop and the fifth consecutive session lower, suggesting reduced fear among market participants. Breadth data show: - 39 stocks building long positions. - 36 stocks unwinding longs. - 105 stocks adding short positions. - 33 stocks covering shorts.
Immediate outlook If the Nifty can close sustainably above the 23,500‑23,600 resistance, the next target is around 23,800. Failure to do so may see the index test support near 23,100‑23,000, with a break below 23,000 potentially opening a path toward 22,800.
Stock‑specific notes - **F&O bans**: Kaynes Technology India added to the ban list; Bandhan Bank and Inox Wind removed. - **Delivery focus**: Several stocks showed a high delivery share, indicating investor‑driven buying rather than speculative trading.
--- *Data sourced from market technical analysis and monthly options open‑interest reports.*