Weekly Wrap: Nifty50 traded below 19300 throughout the day, but managed to close above it

Today, the Nifty 50 index opened at 19,301.75, marking a 64-point decrease from its previous day’s closing level of 19,365.25. It began the day with a candle having a long wick, like a hammer candle, but in red colour on the five-minute timeframe. This indicates that buyers are showing significant interest at these levels, but the sellers were more dominant, pushing Nifty to lower levels and creating an intraday low of 19,253.68, which fortunately remained the lowest point throughout the session.

Nifty then demonstrated some strength from this low and, by 12:00 noon, had gained almost 60 points. However, it encountered resistance and retraced from this level back near the intraday lows during the second half.

Suddenly, it started bouncing back during the second half of the day and moving in an upward direction with extreme speed. It formed back-to-back 4 green candles and captured almost 110 points.

Not only did it breach today’s high, but it also crossed the 19,350 level and reached an intraday high of 19,373. Although it faced hurdles in sustaining these levels and started falling again, it lost almost all its gains, losing approximately 90 points from the high.

When calculating today’s high and low, we observe a trading range of 120 points within which Nifty was trading.

Regarding the weekly data, Nifty opened this week at 19,384, reached a high of 19,483, a low of 19,254, and ultimately closed the week in the red at 19,310. This closing value is 118 points or 0.61% lower than the previous week’s closing level.

If we observe the weekly candle, it has wicks on both sides, indicating pressure from both directions. On the upper side, it has not reached 19,500 even once this week and fell below 19,300. Thankfully, it did not close below 19,300 in any of the trading sessions, including on a weekly basis.

The Relative Strength Index (RSI) for Nifty stands at 42.82 on the daily timeframe, while on the weekly and monthly timeframes, it stands at 62.80 and 64.68, respectively. In both the weekly and monthly time frames, the RSI fell.

Furthermore, throughout the week, Nifty50 traded below the 20-day moving average and above other key moving averages, such as the 50-day, 100-day, and 200-day averages, on the daily timeframe. Moreover, it closed almost at a 50-day moving average.

Considering the current weekly expiry set for August 24, the Call Open Interest is approximately 19.57 lakhs, while the Put Open Interest stands at 16.34 lakhs. Significant open interest is observed at the 19300 and 19400 Call strike prices. On the Put side, substantial open interest is noted at the 19300 and 19200 strike prices, suggesting that these levels may serve as immediate resistance and support for the upcoming expiry.

The Put Call Ratio (PCR) for Nifty50 currently stands at 0.83, according to data from the National Stock Exchange.