Sensex Today | Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities:
On September 27, 2023, the Sensex showed a lack of clear direction as it consolidated within a narrow range throughout the day. The Nifty closed at 19,665, down 10 points. This consolidation comes after the Nifty Futures’ Open Interest (OI) indicated a buildup of fresh short positions in Index futures for the fourth consecutive day. The Long-Short Ratio has fallen below the 50% mark for the first time since August 30, indicating that Foreign Portfolio Investors (FPIs) now hold more short positions relative to long positions in Index futures.
During today’s trading session, the call writers have further strengthened their exposure at the 19,700 Strike. Additionally, the Nifty has formed back-to-back doji candles on the daily chart, indicating indecision in the market. However, there is potential for Nifty to move higher if call writers exit from the 19,700 Strike. On the downside, the support for Nifty is placed at 19,600 levels.
In terms of Bank Nifty, it has been consolidating between the 44,500-44,800 levels for the past three trading sessions and lacks a clear direction at the moment. Bank Nifty closed near the 61.8% Fibonacci retracement level of 44,633, drawn from the low of 43,600 made on August 16 to the high of 46,310 made on September 15. If there is a breakdown below 44,500, it is likely to drag the Index down to 44,000 levels where the next visible support is placed. On the other hand, a close above 44,800 is likely to ignite buying interest once again. Bank Nifty closed at 44,624, down 142 points.
Overall, the market showed signs of indecision and lacked a clear direction. The Nifty and Bank Nifty consolidated within a narrow range and formed doji candles on the daily chart. Traders and investors will keep an eye on how the call writers and FPIs behave in the upcoming sessions. Any significant movements in the 19,700 Strike for Nifty and a breakout or breakdown in Bank Nifty’s consolidation range will provide more clarity and direction for the market. Until then, caution and patience remain key in navigating these uncertain market conditions.