Index weekly wrap: Nifty50 slips and closes below 19500

Today, the Nifty50 index opened at 19554.25, marking a 0.4% decrease from its previous day’s closing level of 19632.55. It began the day with a significant red candle in the five-minute timeframe, indicating a potential downward movement, and started falling gradually until 12:55 PM.
A substantial green candle formed in the 5-minute timeframe at 1:00 PM, depicting recovery from this point. Upon closer examination in the one-minute timeframe, within just three minutes, Nifty recovered almost 36 points. By the end of this period, it had recuperated around 55 to 60 points from its low of 19412 levels.
After a lengthy consolidation lasting approximately one and a half hours, it began falling again during the second half around 2:00 PM. It breached the intraday low of 19434 and eventually concluded the day at 19428.30.
Calculating today’s high and low, we observe a range of 145 points within which Nifty was trading.
In terms of the weekly data, Nifty opened this week at 19576, reached a high of 19645, a low of 19412.75, and ultimately closed the week in the red at 19428. This closing value is 89 points or 0.45% lower than the previous week’s closing level. Although the Nifty50 in the preceding week concluded with a 0.66% decrease from its closing value the week prior, the current week’s candle exhibits a greater bearish sentiment compared to the candle of the previous week. Notably, this week’s candle lacks any lower-side wicks or shadows.
The Relative Strength Index (RSI) for Nifty stands at 47.51 on the daily timeframe, while on the weekly and monthly timeframes, it stands at 65.69 and 65.68, respectively. Notably, the RSI has fallen below 50, whereas last week it was above 50 on the daily timeframe and above 60 on the weekly and monthly timeframes.
Furthermore, throughout the week, Nifty50 traded below the 20-day moving average and above other key moving averages, such as the 50-day, 100-day, and 200-day averages, on the daily timeframe.
Taking into consideration the current weekly expiry, set for August 17, the Call Open Interest is approximately 18.76 lakh, while the Put Open Interest stands at 12.80 lakh. Significant open interest is observed at the 19600 and 19500 Call strike prices. On the Put side, substantial open interest is noted at the 19500 and 19400 strike prices, suggesting that these levels may serve as immediate resistance and support for the upcoming expiry.
The Put Call Ratio (PCR) for Nifty50 currently stands at 0.68, according to data from the National Stock Exchange.
Below is the chart depicting the last two days of Nifty50’s movement in a 5-minute timeframe.