Weekly Market Wrap: Nifty50 Shines, Closing Above 19,400 Levels After Five Red Bars

Today, the Nifty50 index opened at 19,258, marking a flat opening compared to its previous day’s closing level of 19,254. It began the day with a strong, green candle on the five-minute timeframe, indicating that buyers are showing significant interest in pushing the market higher from these levels. 

By 11:00 am, Nifty had rallied nearly 95 points from its early morning low of 19,256, which was established in the first five minutes of trading. It reached an intraday high of 19,351. However, it started encountering resistance or hurdles and entered a consolidation phase, trading within a narrow range of 26 points for the next one hour and twenty minutes. At 12:20 pm, a candle appeared with bullish tendencies, suggesting a possible breakthrough on the upper side of the consolidation range. 

After the breakout, the Nifty started a rally from 19,347 (at the 12:30 candle) and reached a high of 19,459, which marked today’s final high levels. The day concluded at 19,435, representing an increase of 181.50 points or 0.94% from the previous day’s closing levels.  

Calculating the difference between today’s high and low, we find that it traded within a range of 230 points. If we observe today’s candle, we can see that it has engulfed the last five days candles with a significant green bar. 

Turning to the weekly data, the Nifty opened the week at 19,298, reached a high of 19,459, a low of 19,224, and closed the week in the green at 19,435. This closing value is 169.50 points or 0.88% higher than the previous week’s closing level. The difference between this week’s high and low points was 235 points. As for the current weekly candle, it is a robust green bar that is closed on the upper side of the range. After five consecutive red bars, this week closed in the green. 

Looking at the August month candle, it had a range of 572 points (difference between highs and lows). It has gained almost 32% on the very first day of the current month. 

The Relative Strength Index (RSI) for the Nifty stands at 51.49 on the daily timeframe, while on the weekly and monthly timeframes, it stands at 64.27 and 65.09, respectively. In both the weekly and monthly timeframes, the RSI has improved. 

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

Considering the current weekly expiry set for September 07, the Call Open Interest is approximately 14,37 lakhs, while the Put Open Interest stands at 17.94 lakhs. Significant open interest is observed at the 19500 and 19600 Call strike prices. On the Put side, substantial open interest is noted at the 19400 and 19300 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 1.24, according to data from the National Stock Exchange.