Trade Setup For Nov. 21: Market Volatility Continues, Nifty 50 To Watch 23,350–23,700 Range

The current market texture is volatile and the short-term texture indicates that a non-directional activity is likely to continue in the near future, according to Shrikant Chouhan, head of equity research at Kotak Securities.

Chouhan said that as long as the Nifty 50 is trading above the 23,400–23,350 level, buying on dips and sell on rallies would be the ideal strategy. "On the higher side, 23,700–23,750 could act as crucial resistance areas for the bulls. However, below 23,350 traders may prefer to exit out from the trading long positions," he added.

Tuesday's low is crucial and considered as an immediate support, which is 23,350, according to Aditya Gaggar, director of Progressive Share Brokers. "A break on either side will open the door for another 250–300 points."

The Bank Nifty has closed just above the 50,600 hurdle and holding above the mark can lead to a further strength in the index, according to Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C. Mehta Investment Interrmediates Ltd.

"On the downside, the 200-day exponential moving average is placed near 49,920. If the index manages to respect 49,900–49,920 levels, then it could witness a pullback move towards 51,000–51,500 levels," he said.

The Indian equity benchmarks gave up most gains in the last leg of the trade as risk–off sentiment rose, after Ukraine carried out strikes deep inside Russia with western non–nuclear missiles. The risk sentiment was affected by concerns that Ukraine's strike with western weapons may lead to a nuclear response by Russia, the Guardian reported citing Tass.

The Nifty 50 ended 64.70 points, or 0.28% higher at 23,518.50. The Sensex ended up 239.38 points, or 0.31% at 77,578.38.

Overseas investors remained net sellers of Indian equities for the 36th consecutive session on Tuesday, while domestic institutional investors stayed net buyers.

Foreign portfolio investors sold stocks worth Rs 3,411.7 crore and the domestic institutional investors mopped up stocks worth approximately Rs 2,783.9 crore.

The Nifty November futures were down 0.1% to 23,534 at a premium of 16 points, with the open interest down by 5.22%.

The open interest distribution for the Nifty 50 Nov. 21 expiry series indicated most activity at 24,000 call strikes, with the 23,000 put strikes having maximum open interest.

• NLC India: The company will invest up to Rs 3,720 crore in various renewable projects within its arm, subject to compliance with DIPAM guidelines and obtaining necessary approvals from the Ministry of Commerce and other relevant departments.

• Tata Power: The company has formed a strategic partnership with Druk Green Power Corp., a subsidiary of Druk Holding and Investments Ltd. and Bhutan's sole power generation utility, to jointly develop at least 5,000 megawatt of clean energy capacity in Bhutan.

• JSW Steel: The company has been declared the preferred bidder for the Codli Mineral Block in Goa. The estimated iron ore resources are 48.5 million tonnes, along with 2.7 million tonnes of ore in dumps. The final offer price is 92.6% of the 'Value of Mineral Dispatched'.

The Indian rupee closed at a fresh closing low after depreciating to an all-time low of Rs 84.42 during the session on Tuesday, amid foreign fund outflows and RBI intervention.

The local currency closed two paise lower at Rs 84.41, according to Bloomberg data. It had closed at Rs 84.39 on Monday.

Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.