Technical Report: Market Analysis and Recommendation Friday, December 1, 2023.

Key Highlights:

• ? The Nifty50 closed above the 20,100 mark on November 30, supported by last-hour buying.
• Positive trend with higher highs and higher lows formation for the third consecutive session.
• Ongoing momentum and renewed FII buying interest suggest a favourable trend for bulls.
• Experts anticipate Nifty50 surpassing the previous record high (20,222) in the early days of December.
• Immediate support at 20,000; resistance at 20,200-20,230, followed by 20,450-20,500.

Market Direction Recommendation:

The current market conditions indicate a bullish trend with sustained positive momentum. The Nifty50's ability to close above the crucial 20,100 mark and the formation of higher highs and higher lows for the third consecutive session provide a strong foundation for a continued upward trajectory. The renewed interest from Foreign Institutional Investors (FIIs) and the highest-ever single-day buying on the monthly expiry day further support the bullish sentiment.

Key Technical Levels:

?Support Levels: Immediate support at 20,000; a drop below this level may weaken sentiment.

Resistance Levels: 20,200-20,230 is a crucial resistance zone; a breach may lead to further gains towards 20,450-20,500.

Options Data Analysis:

Call Open Interest (OI): 20,500 strike has maximum OI, acting as a key resistance. Call writing at this strike indicates potential resistance.

Put Open Interest (OI): 20,100 strike has maximum OI, serving as a key support area. Put writing at this strike strengthens the support level.

Put-Call Ratio (PCR):

The Nifty PCR fell to 1.26 on November 30, indicating a shift in sentiment. An above 1 PCR suggests increased bearish sentiment, though the overall market trend remains positive.

Conclusion:

The overall market sentiment remains strong, with the potential for further upside. The technical analysis suggests that as long as the Nifty50 stays above 20,000, the buy-on-dips strategy is likely to prevail. The resistance levels at 20,200-20,230 should be monitored closely, as a successful breach may lead to higher targets.

Professional Recommendation:

Based on the current analysis, investors should maintain a bullish stance, considering the positive market dynamics and the potential for the Nifty50 to surpass previous record highs. However, careful monitoring of key support and resistance levels, especially 20,000 and 20,200-20,230, is crucial for informed decision-making.

Keywords:

Nifty50, Market Trend, Bullish, Resistance, Support, Options Data, Call OI, Put OI, PCR, FII, Technical Analysis, Buy-on-Dips.

Disclaimer: This report is for informational purposes only and should not be considered as financial advice. Investors are advised to conduct their own research and consult with financial professionals before making investment decisions.