Weekly Wrap: Nifty50 closes the day in green above 19,600 on RBI’s stance to keep interest rates unchanged

The Nifty50, the most beloved and widely traded index in India, ended the week slightly up by 15 points compared to the previous week’s closing level of 19,638, concluding the day at 19,653.

Observing today’s session, it opened the day at 19,621, which was 75 points up from its previous day’s closing level of 19,546. It reached intraday highs and lows of 19,676 and 19,589, respectively, and finally concluded the day at 19,653, which is 0.55% higher than its previous day’s closing level.

In the first instance, it formed higher highs and higher lows during the intraday session, where every swing low was higher than the previous intraday lows.

In the first five minutes of opening, it formed an almost full-bodied red candle, signifying that it might fall significantly. However, it only dropped 32 points and reached its intraday low of 19,589 during the early morning trading session at around 9:45 AM, and it never returned to these levels throughout the day.

During the RBI’s announcement of its decision regarding interest rates, it recovered from this intraday low and rallied almost 70 points, reaching a high of 19,658. Then, suddenly, it dropped around 54 points from this high. We can infer that the market didn’t like some part of today’s policy.

Once again, the market recovered and reached a new high of around 19,676 during the closing session, finally concluding with a minor pullback of 23 points at 19,653.

For the last two days, the market has consistently opened with a gap and maintained its gains until the close of the day. The trading range for today’s session is 87 points.

Intraday Chart (5-min time frame) 

Turning our attention to the weekly and monthly observations, the Nifty has formed a pin bar candle or a bullish hammer candle with a long wick at the bottom, suggesting aggressive buying from lower levels. The trading range for this week is 342 points.

The weekly close is nearly flat to positive, with a minor gain of just 15 points from its previous week’s closing level of 19,638.

The monthly candle replicates the weekly candle because this is the first week of trading in October. Trading for this month began on October 3, which was a Tuesday and the first trading day of the month.

The Relative Strength Index (RSI) stands at 49.96 on the daily timeframe, while on the weekly and monthly timeframes, it stands at 60.93 and 66.01, respectively. On every timeframe, the RSI has improved.

Furthermore, the Nifty50 has closed above all key moving averages, including the 50-day, 100-day, and 200-day averages, on the daily timeframe except 20-day.

Open Interest: 

Considering the current monthly expiry set for October 12, the Call Open Interest is approximately 16.21 lakh, while the Put Open Interest stands at 16.15 lakhs. Significant open interest is observed at the 19,700 and 19,900 Call strike prices. On the Put side, substantial open interest is noted at the 19,600 and 19,500 strike prices, suggesting that these levels may serve as immediate resistance and support for the upcoming expiry.

The Put Call Ratio (PCR) currently stands at 0.99, according to data from the National Stock Exchange.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.