Nifty Gains Cover Gap Down, Nears Next Resistance Level

Nifty Gains Cover Gap Down, Nears Next Resistance Level

Nifty opened with a significant gap down of 88 points at 16,187.05. However, the Nifty gains recovered the loss and closed at a higher level than Monday’s high of 16,287. On Tuesday, July 19, 2022, the index gained by 0.38% and closed at 16,340.55 (up by 62.05 points) with a strong bullish candle led by Realty (gaining by 2.55%) and PSU Bank (up by 2.29%).

With the aforementioned gain, this Indian stock market index is nearing its next resistance level, which is set at 16,450. Therefore, it can rightly be said that the Nifty continues upperside bullish rally. Currently, the nearest support level stands at 16,280.

nifty-chart
NIFTY Chart

Earlier on Monday, the Nifty opened the gap up with 100 points followed by SGXNifty and global cues and closed above its previous swing high of 16,275. The index gained about 1.44% and was up by 230 points led by IT and Private Banks with a strong candle.

Open Interest Analysis

Highest Open Interest

  • CE Side = (a) 1,15,830 at 16,500

                             (b) 1,07,838 at 16,400

  • PE Side = (a) 1,59,321 at 16,200

                             (b) 1,04,268 at 16,300

Change In OI/ Open Interest

Addition

  • PE Side = (a) At 16,200 was 42,686

                             (b) At 16,300 was 64,833

By analysing the option chain, we can clearly see that 16,500 option writers shifted to 16,600.

Highest Unwinding

CE Side at 16,100 was 17,729

Exponential Moving Average (EMA)

The recent data for the nearest 100-day EMA shows that it is valued at 16,433 and acts as a resistance. Whereas, the value for the nearest 50-day EMA stood at 16,150, which acts as a support.

Top Gainers And Losers Today

The top Indian stocks that saw an increase today are mentioned below.

1. Axis Bank

Axis Bank (NSE: AXISBANK), a major private bank in India, saw its stock rise by 2.23% and close at INR 699.75 (up by 15.25 points) today. The total trade volume of the stock stood at 1,01,71,314, worth INR 70,831 lakhs.

2. Apollo Hospitals Enterprise Limited

Apollo Hospitals (NSE: APOLLOHOSP), a medical sector giant, saw its share prices gain by 2.07% and close at INR 4,029.00 (up by 81.90 points) today. The total trade volume of the stock stood at 4,12,946, worth INR 16,495.29 lakhs.

3. Mahindra & Mahindra Limited

Mahindra & Mahindra Limited (NSE: M&M), a leading automotive manufacturer in India, saw its stock prices gain by 1.86% and close at INR 1,185.00 (up by 26.60 points) today. The total trade volume of the stock stood at 40,56,414, worth INR 47,836.88 lakhs.

The stocks that fell the most even during today’s Nifty gains have been highlighted below.

1. Oil & Natural Gas Corporation Limited

Oil & Natural Gas Corporation Limited (NSE: ONGC), a governmental oil and gas producer, saw its stock prices drop by 3.04% and close at INR 125.95 (down by 3.95 points) today. The total trade volume of the stock stood at 3,37,78,758, worth INR 43,898.87 lakhs.

2. HDFC Life Insurance Company Limited

HDFC  Life Insurance Company Limited (NSE: HDFCLIFE), a leading insurance company in India, saw its share prices slip by 1.35% and close at INR 535.45 (down by 7.30 points) today. The total trade volume of the stock stood at 46,54,412, worth INR 25,036.55 lakhs.

3. Nestle India Limited

Nestle India Limited (NSE: NESTLEIND), a popular FMCG company in India, saw its share prices dip by 1.32% and close at INR  18,380.00 (down by 245.40 points) today. The total trade volume of the stock stood at 43,728, worth INR 8,034.71 lakhs.

The consecutive Nifty gains sessions have served as a breather from the recent bearish trends. Moreover, analysts consider the upperside potential to be promising as well.

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Sahil Patil

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