US-Iran Peace Deal Updates Await as Markets Prepare for Opening Bell

Nifty 50 Consolidates After Gap-Up Opening

The Nifty 50 index witnessed a consolidation phase after a gap-up opening on April 16, closing 0.14 percent lower on the day. Market participants were awaiting further updates regarding potential US–Iran peace talks, which contributed to the cautious trading sentiment.

Despite the consolidation, the near-term bullish momentum remains intact, with the index holding well above short-term moving averages and supported by a declining VIX. Immediate support is placed in the 24,100–24,000 zone, followed by the 10-day EMA (23,700), which will act as a crucial support level. On the upside, 24,400 is expected to be an immediate hurdle, and a decisive move above this level could open the door for 24,700–24,800 levels.

Key Levels for Nifty 50

| Level | Pivot Points | | --- | --- | | Resistance | 24,347, 24,418, 24,532 | | Support | 24,120, 24,049, 23,935 |

The Nifty 50 formed a bearish candle after a gap-up opening but managed to hold above the 50-day EMA on a closing basis, as well as the bullish gap of April 15. This indicates a healthy market correction from the crucial overhead resistance of 24,415 and reflects indecisiveness between bulls and bears. The index continued to trade above short-term moving averages, both of which are trending upward, with the 10-day EMA positioned above the 20-day EMA. The RSI remained above 50 at 55.40 despite a minor decline, while the MACD maintained a northward trajectory toward the zero line with rising histogram bars.

Bank Nifty Shows Near-Term Indecision

The Bank Nifty also formed a bearish candle with minor upper and lower shadows on the daily chart, indicating a tussle between buyers and sellers and highlighting a phase of near-term indecision after the recent move. The banking index surpassed the 200-day EMA but witnessed profit booking for another session, closing marginally below the 50-day EMA with a 0.4 percent loss on Thursday. The index continued to trade well above short-term moving averages, both of which are trending upward, with the 10-day EMA holding above the 20-day EMA. The RSI remained above 50 at 54.23 despite a moderate decline, while the MACD maintained its upward trajectory and the histogram stayed above the zero line despite a fading green bar.

Options Data

| Nifty Call Options Data | Nifty Put Options Data | Bank Nifty Call Options Data | Bank Nifty Put Options Data | | --- | --- | --- | --- | | Maximum Call open interest: 24,800 strike (75.2 lakh contracts) | Maximum Put open interest: 23,500 strike (53.14 lakh contracts) | Maximum Call open interest: 57,000 strike (6.99 lakh contracts) | Maximum Put open interest: 55,000 strike (7.97 lakh contracts) | | Maximum Call writing: 24,800 strike (41.36 lakh contracts) | Maximum Put writing: 23,500 strike (16.32 lakh contracts) | Maximum Call writing: 56,500 strike (1.19 lakh contracts) | Maximum Put writing: 56,600 strike (51,150 contracts) |

Funds Flow and Put-Call Ratio

The Nifty Put-Call ratio (PCR) fell to 0.98 on April 16, compared to a 1.12 previous session. The increasing PCR, or being higher than 0.7 or surpassing 1, means traders are selling more Put options than Call options, which generally indicates the firming up of a bullish sentiment in the market.

India VIX and Volatility

India VIX, which measures expected market volatility, maintained its downtrend, falling 3.12 percent to 18.08, signalling comfort for bulls. However, the VIX needs to drop below the 15 zone to bring bulls back into a strong comfort zone.

Stocks and Derivatives

A long build-up was seen in 78 stocks, indicating a build-up of long positions. 36 stocks saw a decline in open interest (OI) along with a fall in price, indicating long unwinding. 39 stocks saw an increase in OI along with a fall in price, indicating a build-up of short positions. 65 stocks saw short-covering, meaning a decrease in OI, along with a price increase.

High Delivery Trades and F&O Ban

Stocks that saw a high share of delivery trades reflect investing (as opposed to trading) interest in a stock. Securities banned under the F&O segment include companies where derivative contracts cross 95 percent of the market-wide position limit.