Market Preview: 15 Key Developments Ahead of the Open as Ceasefire Deadline Nears

Nifty 50 Stalls at 24,400-24,500 Resistance

The Nifty 50 index closed flat with a positive bias on April 20, after encountering profit booking at the 24,400-24,500 hurdle. Market participants remained cautious due to the impending US-Iran ceasefire deadline and uncertainty surrounding the Strait of Hormuz. Momentum indicators suggest that the market is in a consolidation phase, with a lack of strong directional conviction.

However, the higher high-higher low formation remains intact, indicating a potential upmove toward 24,800 (200-day Exponential Moving Average). The Nifty needs to break decisively above 24,500 for this upmove to occur. Until then, consolidation is likely to continue, with immediate support at 24,200, followed by 24,100-24,000 as crucial support levels.

Key Levels For The Nifty 50

| Key Level | Resistance | Support | | --- | --- | --- | | 24,365 | 24,454, 24,510, 24,602 | 24,271, 24,214, 24,123 |

The Nifty 50 formed a small-bodied bearish candle with minor upper and lower shadows on the daily charts, indicating consolidation. However, the higher high-higher low structure remains intact, with the index sustaining above medium- and short-term moving averages. The 10- and 20-day EMAs have continued to trend higher for the past couple of weeks. The Relative Strength Index (RSI) rose moderately to 57.24, while the Moving Average Convergence Divergence (MACD) moved above the zero line, although the green histogram bars faded slightly.

Bank Nifty Also in Consolidation

The Bank Nifty index also formed a candlestick pattern similar to the Nifty 50 after testing long-term moving averages again and facing profit booking at those levels, indicating consolidation. However, it sustained above medium- and short-term moving averages, most likely continuing its higher high-higher low structure. In fact, the short-term moving averages (10- and 20-day EMAs) maintained an upward trend, while the RSI rose slightly to 56.11. The MACD is on the verge of breaking above the zero line with a bullish crossover, though the green histogram bars faded slightly.

Key Levels For The Bank Nifty

| Key Level | Resistance | Support | | --- | --- | --- | | 56,582 | 56,953, 57,125, 57,403 | 56,396, 56,224, 55,946 | | | 57,195, 59,169 (Fibonacci Retracement) | 55,387, 54,342 (Fibonacci Retracement) |

Options Data Indicate Consolidation

According to the weekly options data, the maximum Call open interest was seen at the 25,000 strike (with 1.13 crore contracts), which can act as a key resistance level for the Nifty in the short term. The maximum Call writing was observed at the 24,450 strike, which saw an addition of 15.53 lakh contracts. The maximum Call unwinding was seen at the 24,200 strike, which shed 17.01 lakh contracts.

On the Put side, the 24,000 strike holds the maximum Put open interest (with 83.15 lakh contracts), which can act as a key support level for the Nifty in the short term. The maximum Put writing was placed at the 23,700 strike, which saw an addition of 17.37 lakh contracts. The maximum Put unwinding was seen at the 24,200 strike, which shed 8.08 lakh contracts.

Market Indicators

| Indicator | Value | | --- | --- | | Nifty Put-Call Ratio (PCR) | 1.13 | | India VIX | 18.79 |

The Nifty Put-Call ratio (PCR) climbed to 1.13 on April 20, compared to a 1.09 previous session. The India VIX surged 9.21 percent to 18.79 after a three-day decline, signalling some discomfort for bulls due to uncertainty around the US-Iran deal.

Funds Flow, Put-Call Ratio, and India VIX

| Indicator | Value | | --- | --- | | Funds Flow (Rs crore) | - | | Put-Call Ratio | 1.13 | | India VIX | 18.79 |

Stocks Under F&O Ban

The Securities and Exchange Board of India (SEBI) has banned the following stocks under the F&O segment:

| Stock | Reason | | --- | --- | | SAIL | - |

The stocks that were added to the F&O ban list are Nil. The stocks that were removed from the F&O ban list are Sammaan Capital.