Indian Stock Market Prediction for Today: March 26, 2024

Read the post to know the Indian Stock Market Prediction, Important levels and options strategies in Nifty and BankNifty for March 26, 2024.

Indian Stock Market Prediction for Today: March 26, 2024

Hello dear friend, in this Indian Stock Market Prediction for Today blog post, we will try to analyse trends based on technical charts and Open Interest data. We also try to find important support and resistance in Nifty and BankNifty.

So read the post till the end to know what the trading plan could be today based on the trend and levels.

Indian Stock Market Prediction for Today i.e. March 26, 2024

After a good upside rally, the Indian Stock Market especially the Nifty50 index opened flat and traded in a range last week. It seems the Indian Stock Market is gaining some strength for the next upside rally.

Although the Indian stock market is trading flat, we have seen a significant buying interest in Midcap stocks, which is a good sign of the overall bullish trend in Nifty.

Now If you look at the overall sentiments, the short-term trend looks positive and there is no sign of a bearish trend in Nifty. So I suggest we should for a clear indication of a breakout or a breakdown to initiate a fresh trade.

Where Nifty looks positive, BankNifty is trading flat and still requires a breakout for a fresh upside rally.

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Indian Stock Market Prediction Based on the chart

Nifty and BankNifty Chart today
  • After a sharp decline due to profit booking at higher levels, We can see that Nifty is facing resistance near 21900, an important resistance level based on the Fibonacci Extension tool. Now if Nifty manage to sustain above this level then we may see some more upside levels in the coming week. Weekly Range looks would be 21900 - 22380.
  • BankNifty is trading in a range and still needs a breakout from 48630 for a fresh upside rally. Now based on the chart, we can say that the immediate trend in BankNifty is "Flat" and we should avoid any directional bet from here.
  • Although the range in BankNifty is big and gives a good chance for scalpers. They can follow buy-at-support and sell-at-resistance strategies untill BankNifty gives a proper directional sign.
Now after looking at chart, we can say that short term trend looks bullish in Nifty and Neutral BankNifty and there is no sign of a clear directional bet. So follow data and chart and trade accordingly.

Based on the short-term trends, we can create a mild bullish strategy in Nifty and a neutral strategy in BankNifty.

Keep one thing in mind while creating your option strategies both the indices trading near support or resistance levels. So keep yourself prepared for some consolidation or reversal. So choose your strategy wisely.

Indian Stock Market Prediction based on Open Interest data

Nifty Open Interest Chart - Post Market Analysis
Source: Trend Following Excel Sheet by TradePik
  • For Nifty: 22000 is acting as immediate support with a PCR at 2.11 and resistance is at 22300 with a PCR at 0.38. Max pain is at 22100.
  • For BankNifty: 46500 is acting as immediate support with PCR at 2.61 and 47200 as immediate resistance with PCR at 0.26. Max pain is at 47000.
  • Expiry Range:
    • For Nifty = 21900 - 22300.
    • For BankNifty = 46500 - 47300 ( based on current OI data. Keep following change in OI for further levels)
BankNifty Open Interest Chart - support and resistance for today
Source: Trend Following Excel Sheet by TradePik
The intraday trend was “Bearish” in Nifty and "Neutral" in BankNifty today. (based on our trend-following sheet and setup)

Important Levels and Option Strategies for March 26, 2024

After a highly volatile week, Nifty and BankNifty both opened flat today. So as expected, we may see some range-bound activities in the coming sessions but volatility would be high. So trade cautiously.

Because of the trend and high volatility, we should create some credit strategies only. I suggest we should trade limited risk strategies only:

  • For Banknifty, We can create an iron butterfly while keeping 47000 as the max pain.
  • We can sell 47000 CE and PE and we can buy 47500 CE and 46500 PE, based on the current data.

Important: You should keep in mind that the above trades are based on the current data and need some adjustments if data changes. So proper knowledge and understanding are required before taking entry into any position.

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DISCLAIMER: We are not SEBI research analysts. Views and trading strategies are posted in this blog post, only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline for interpreting specified analysis methods. This information should only be used by investors and traders aware of the risk inherent in securities trading.

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